What does individual demand refer to?

Individual demand refers to the willingness and ability of a single customer to purchase a specific quantity of a good or service at various prices over a given time period. This concept emphasizes the choices and behaviors of one person, taking into account their unique preferences and budget constraints.

When analyzing demand, it's crucial to distinguish between individual demand, which focuses on one consumer, and market demand, which aggregates the demands of all consumers within a market. In contrast to the other choices, which reference broader scopes—such as total demand (which reflects the collective purchasing power of the market), average demand across demographics, or overarching market trends—individual demand provides insights into the motivations and limitations of individual consumers. This understanding helps businesses tailor their products and marketing strategies to meet specific consumer needs effectively.