The market demand curve
A) cannot show how quantity demanded changes in response to a change in price.
B) cannot show a change in demand for a good.
C) is the horizontal sum of individual demand curves.
D) is the vertical sum of individual demand curves.
E) is upward sloping.

Question

Quizplus · Accepted Answer

The market demand curve is the horizontal sum of individual demand curves, which means it shows the total quantity demanded at each price level by summing up the quantities demanded by each individual in the market. It can show how quantity demanded changes in response to a change in price, and it can also show a change in demand for a good. The market demand curve is not upward-sloping as it may be for an individual demand curve, as the law of demand states that as price increases, quantity demanded decreases.

The Market Demand Curve