Market demand curves are obtained by
A) determining the price each consumer is willing to pay for the good and summing those prices across all consumers.
B) observing the prices and quantities sold in a market over time and plotting those price-quantity combinations in a graph.
C) summing the quantities every consumer is willing to buy at each different price.
D) observing the behavior of an individual consumer in a market.
E) averaging the quantities every consumer is willing to buy at each different price.

Question

Quizplus · Accepted Answer

Market demand curves are obtained by summing the quantities every consumer is willing to buy at each different price. This gives an aggregate representation of the market demand for a given product or service. Option A refers to the technique used to construct an individual demand curve. Option B describes how to plot actual prices and quantities, but not how to obtain the demand curve. Option D and E refer to individual behavior, not market behavior.

Market Demand Curves Are Obtained by