In order to derive a market demand curve from individuals' demand curves, we add up the
A) various individuals' quantities demanded at each price level.
B) various prices that each buyer is willing and able to pay.
C) incomes of all buyers, assuming that their tastes remain constant.
D) total number of buyers in the market at each time period.

Question

Quizplus · Accepted Answer

To derive a market demand curve, we need to add up the various individuals' quantities demanded at each price level. The market demand curve shows the total amount of a good or service that buyers are willing and able to purchase at each price level in a given market. It is derived by horizontally summing the demand curves of all individual buyers.

In Order to Derive a Market Demand Curve from Individuals