Description 
The narrator demonstrates how the 
market supply and demand curves are 
derived from individual supply and 
demand curves. 
 

Audio Transcript 

Customer #1: That sure is a lot for a burger, I think I'll go somewhere else. 

Other Customers: Wow, look at those prices. Hey! Let's try that new place across the street. Yeah. They're much more reasonable. 

Narrator: Marge is not the only one in town selling burgers made from large flightless birds. Marge found this out the hard way when she raised her price too high and saw her customers flock to Emu Burger. 

Narrator: Marge is an individual supplier. The market supply for these burgers is made up of all the individual suppliers. 

Narrator: If we assume that Ostrich Burger and Emu Burger are the only burger joints in town, we derive the market supply curve by adding the supply curve from Emu Burger to the supply curve for Ostrich Burger. 

Narrator: Market demand is derived in a similar way. Max is a typical consumer, but his demand curve does not represent the demand of the entire market. 

Narrator: The market demand curve is derived by adding the demand curves of all consumers in the market. 

Narrator: Most of the time in the study of economics we are concerned with very large markets made up of thousands or millions of individual buyers and sellers. 

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