Graphically, the market demand curve is:

Question

Quizplus · Accepted Answer

The market demand curve is the horizontal sum of individual demand curves. This means that at any given price level, the market demand is equal to the sum of the individual demands from all consumers in the market. This results in a flatter market demand curve compared to the steeper individual demand curves. Option A is incorrect as the market demand curve is flatter than any individual demand curve. Option B is incorrect as the market demand curve is the sum of individual demand curves, not greater than. Option D is incorrect as the market demand curve is the horizontal sum of individual demand curves, not the vertical sum.

Graphically, the Market Demand Curve Is