Which best expresses the relationship between the market and individual demand curves?
A) The market demand curve is an average of all individual demand curves.
B) The market demand curve is constructed by multiplying the price times the quantity demanded by each consumer and summing the results.
C) The market demand curve is found by adding the quantities demanded by each consumer at each possible price.
D) The market demand curve sums the prices each individual is willing to pay for a given quantity.
E) Individual demand curves can be found by dividing the market demand by the number of buyers.

Question

Quizplus · Accepted Answer

The market demand curve is derived by horizontally summing the quantities demanded by all consumers at each possible price, not by averaging or summing prices. This process reflects the total quantity demanded in the market at each price level.

Which Best Expresses the Relationship Between the Market and Individual