Summing demand curves horizontally sends market ______________ to individuals,while summing vertically sends market ______________ to individuals.
A) price; price
B) quantity; quantity
C) quantity; price
D) price; quantity

Question

Quizplus · Accepted Answer

When we sum demand curves horizontally, we are adding up the quantity demanded at each price level by each individual in the market. Therefore, the result is the market demand for a particular quantity at a given price. This gives us the market demand curve that shows the total quantity demanded by all consumers in the market at each price level.

On the other hand, when we sum demand curves vertically, we are adding up the price that each individual consumer is willing to pay for a particular quantity. Therefore, the result is the individual demand for a particular quantity at a given price. This gives us the individual demand curve that shows the price that each consumer is willing to pay for a particular quantity.

Hence, summing demand curves horizontally sends market quantity to individuals and summing vertically sends market price to individuals.

Summing Demand Curves Horizontally Sends Market ______________ to Individuals,while Summing