Graphically, the market demand curve is: a. Steeper than any individual demand curve that comprises it b. The horizontal sum of individual demand curves c. The vertical sum of individual demand curves d. Greater than the sum of the individual supply curves
Question
Graphically, the market demand curve is:
a. Steeper than any individual demand curve that comprises it
b. The horizontal sum of individual demand curves
c. The vertical sum of individual demand curves
d. Greater than the sum of the individual supply curves
Solution
The correct answer is:
b. The horizontal sum of individual demand curves
The market demand curve is derived by horizontally summing the individual demand curves of all consumers in the market. This means that at each price level, the quantities demanded by each consumer are added together to get the total quantity demanded in the market. This total quantity demanded at each price level is then used to draw the market demand curve.
Options a, c, and d are incorrect. The steepness of the market demand curve (option a) depends on the price elasticity of demand, not on the steepness of individual demand curves. The market demand curve is not the vertical sum of individual demand curves (option c), and it is not related to the sum of individual supply curves (option d).
Similar Questions
Market demand is the horizontal summation of individual curves.
A demand curve is:
A perfectly competitive business's demand curve is a(n):Multiple Choicedownward-sloping straight line reflecting the law of demandstraight line parallel to the horizontal axisstraight line parallel to the vertical axisupward-sloping straight line reflecting the constant value of price as output increasesdownward-sloping convex curve
The market demand represents:Multiple choice question.the average of individual demand curves.the maximum amount for sale.the division of individual demand curves.the horizontal summation of individual demand curves.
A demand curve is: Group of answer choices The amount of a product or service that a consumer desires. The quantity of a good or service that a consumer thinks about buying. The quantity of a consumer would like to buy, if they had the money. The amount of a good that a consumer is willing and able to purchase at different prices of the good. None of the above.
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