Graphically, a market demand curve is found by
A) taking the average of all prices that people are willing to pay.
B) summing the quantities demanded by all individuals at each price.
C) summing the prices each consumer would pay for each quantity.
D) taking the average of the individual demand curves.

Question

Quizplus · Accepted Answer

The market demand curve represents the sum of the quantities of a good or service demanded by all individuals in the market at each price. Therefore, it is found by summing the quantities demanded by all individuals at each price, which is option B. Options A and C are incorrect because they focus on individual prices or quantities, not the aggregation of all individuals in the market. Option D is incorrect because taking the average of individual demand curves does not provide information on the total quantity demanded at each price level.

Graphically, a Market Demand Curve Is Found by