The market demand curve is derived from
A)the vertical summation of individual demand curves.
B)the average quantity demanded of all individuals in the economy.
C)a weighted average of the quantity demanded of all individuals in the economy at each price.
D)the horizontal summation of individual demand curves.
E)market data provided by Statistics Canada.

Question

Quizplus · Accepted Answer

The market demand curve is derived by horizontally adding up individual demand curves at each price level, so D is the correct choice. The remaining options are incorrect, as A and C refer to vertical summation of individual demand, B refers to the average quantity demanded which is not a sufficient basis for constructing the market demand curve, and E is unrelated to the market demand curve construction.

The Market Demand Curve Is Derived from