The market demand curve is derived graphically by
A)adding the prices paid by all individuals in the market at each quantity demanded.
B)adding the quantity demanded by all individuals in the market at each specific price.
C)adding the marginal utilities for all individuals in the market at each specific price.
D)the process of vertical summation.
E)adding the prices all individuals are willing to pay at each specific quantity demanded.

Question

Quizplus · Accepted Answer

The market demand curve is derived by adding the quantity demanded by all individuals in the market at each specific price. This is done graphically by plotting the total quantity demanded at each price by adding up the individual quantities demanded at that price. The resulting curve shows how the total quantity demanded in the market varies with the price.

The Market Demand Curve Is Derived Graphically by