The market demand curve

Question

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The market demand curve shows the total quantity demanded of a good or service at different price levels, holding all other factors constant. It is not necessarily the same as individual demand curves, although it is influenced by them. The market demand curve cannot be calculated simply by multiplying the number of consumers by the individual demand curve, as each individual consumer's demand curve may vary. Finally, while the market demand curve can be estimated without knowing individual demand curves, it is usually more accurate to have information on both.

The Market Demand Curve