What does individual demand refer to?

Individual demand specifically refers to the quantity of a good or service that a single consumer is willing and able to purchase at different price levels. This concept focuses on the preferences and purchasing power of one individual, demonstrating how changes in price can influence their purchasing decisions. For instance, as the price of a product decreases, it is likely that the quantity demanded by that individual will increase, reflecting their responses to price changes in the market.

In contrast, the other options pertain to broader or different economic concepts. The first choice introduces the idea of market demand, which aggregates the demand from all consumers rather than focusing on a single individual. The third choice relates to total consumption in an economy, which encompasses the demand of all individuals and sectors, while the last option addresses the overall sales performance of industries without linking directly to price changes at the consumer level. Therefore, the correct understanding of individual demand is vital for analyzing consumer behavior and market dynamics accurately.