For private goods, market demand is the ________ summation of individual demand curves and for public goods, market demand is the ________ summation of individual demand curves.
A) horizontal; vertical
B) vertical; horizontal
C) horizontal; horizontal
D) vertical; vertical

Question

Quizplus · Accepted Answer

For private goods, market demand is determined by horizontally summing individual demand curves because each unit of the good can be consumed by only one individual at a time. For public goods, market demand is determined by vertically summing individual demand curves because these goods can be consumed by multiple individuals simultaneously without reducing the amount available to others.

For Private Goods, Market Demand Is the ________ Summation of Individual