A market demand curve:
A)is less elastic than the individual demand curve.
B)has no income effects.
C)is the sum of all individual demand curves.
D)positively sloped.

Question

Quizplus · Accepted Answer

A market demand curve is the horizontal summation of all individual demand curves. In other words, it represents the total quantity of a good or service that all consumers in a market are willing and able to buy at different prices. It is not necessarily less elastic than the individual demand curve, and income effects may be present depending on the type of good or service being considered. A market demand curve may slope upward or downward depending on the relative magnitudes of income and substitution effects.

A Market Demand Curve