Question

What distinguishes an individual demand schedule from a market demand schedule?

Options

• Individual schedule records all consumers’ preferences

• The market schedule records only one person’s demand

• An individual schedule shows demand of a single consumer

• Both are exactly the same

Answer 1

An individual schedule shows demand of a single consumer

Explanation:

The individual demand schedule reflects the preferences and buying habits of a single consumer, while market demand adds up all individuals’ demands at each price level.