We are given the individual demand curves for all of the people that consume Good Y. Which statement is TRUE about the market demand curve for Good Y?
A)The market demand curve is obtained by horizontally summing the individual demand curves.
B)The market demand curve is obtained by vertically summing the individual demand curves.
C)The market demand curve cannot be obtained because information on prices is missing.
D)The market demand curve cannot be obtained from individual demand curves.

Question

Quizplus · Accepted Answer

The market demand curve is obtained by horizontally summing the individual demand curves. This means adding up the quantities demanded at each price point across all individuals in the market.

We Are Given the Individual Demand Curves for All of the People