What is market demand?

Question

Quizplus · Accepted Answer

Market demand is the horizontal summation of individual demand curves. This means that we add up the quantity demanded at each price across all individual consumers in the market to get the total quantity demanded in the market. It is not a vertical summation because the price does not change as we add up the individual demand curves – it only changes the quantity demanded. Market demand is also responsive to changes in tastes and preferences, as well as changes in any other factors that may affect consumer behavior. It is not solely determined by the number of buyers and sellers in the market, but rather by their individual demand curves.

What Is Market Demand