A market demand curve is found by
A) adding the prices each consumer would pay for each quantity.
B) adding the prices and the quantities demanded by a consumer.
C) adding the quantities demanded for each individual consumer at each price.
D) taking the demand curve of the "representative" consumer.

Question

Quizplus · Accepted Answer

A market demand curve is derived by adding the quantities demanded by each individual consumer at each price level. This gives us the total quantity of a good or service that all consumers are willing and able to buy at different price levels. Choices A and B are incorrect because market demand is not simply the sum of individual willingness-to-pay or quantity demanded by a single consumer. Choice D is also incorrect because the representative consumer is a theoretical construct and may not accurately represent the preferences and behaviors of all consumers in the market.

A Market Demand Curve Is Found by