We can derive a market demand curve for an item by:
A)multiplying each individual's demand curve by the number of consumers in the marketplace.
B)summing all of the quantities that would be demanded by individual consumers at different prices for that good and plotting the total quantities against price.
C)looking at how the equilibrium changes when we shift each individual's supply curve.
D)subtracting the price of an item from the supply curve.

Question

Quizplus · Accepted Answer

The market demand curve for a good is obtained by summing up the individual demand curves of all consumers in the market. This involves adding up the quantities of the good that each consumer is willing and able to buy at different prices. The resulting market demand curve shows the total quantity of the good that all consumers in the market are willing and able to buy at each price. Option A is incorrect as it ignores the prices of goods. Option C is incorrect as it refers to supply curves instead of demand curves. Option D is incorrect as it doesn't make sense to subtract price from a supply curve. The market demand curve represents the sum of all individual demand curves for a particular good. To derive it, we need to add up the quantities demanded by each individual at different prices and plot them against price. Option A is incorrect because we should be summing the quantities demanded, not multiplying. Option C refers to supply, not demand. Option D does not make sense as we cannot subtract a price from a supply curve.

We Can Derive a Market Demand Curve for an Item