The market demand curve is
A)any individual consumer's demand curve multiplied by the number of consumers in the market
B)a relationship between total income and total quantity demanded
C)the horizontal sum of the individual demand curves of all consumers in the market
D)the vertical sum of the individual demand curves of all consumers in the market
E)the sum of the prices paid at each quantity demanded

Question

Quizplus · Accepted Answer

The market demand curve represents the demand of all consumers in the market, which is the horizontal sum of individual demand curves. This means that at any given price, it shows the total quantity demanded by all consumers in the market. Option A is incorrect, as it multiplies an individual's demand curve by the number of consumers in the market, but it doesn't give a total market demand. Option B is incorrect because the market demand curve isn't related to total income, but rather the relationship between price and quantity demanded. Option D and E are both incorrect, as they don't accurately describe the market demand curve.

The Market Demand Curve Is