A market demand curve

Question

Quizplus · Accepted Answer

A market demand curve is derived by horizontally summing individual demand curves. This means that at each price point, the market demand for a good is the sum of the quantity demanded by each individual in the market. The other options are incorrect: A is the definition of an individual demand curve; C is true as a change in the price will cause a movement along the demand curve, but it will not shift the curve itself; and D is not necessarily true as the steepness of a demand curve depends on the individual preferences of consumers.

A Market Demand Curve