The figure given below represents the PPC in two nations

Question

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4
 
-The market demand curve is derived by:
A)studying an individual's demand for a product over a year. 
B)comparing the monthly consumption of a group of people. 
C)surveying a set of consumers and ascertaining their preferences. 
D)adding up the quantities that consumers in a market are willing and able to purchase at each price. 
E)calculating the average price a random sample of consumers are willing to pay for a product.

Quizplus · Accepted Answer

The market demand curve is derived by adding up the quantities that consumers in a market are willing and able to purchase at each price. This involves surveying or observing the behavior of consumers in the market, rather than studying an individual's demand or calculating the average price a random sample of consumers are willing to pay. The monthly consumption of a group of people may be one factor in determining their demand, but it is not the sole determinant of the market demand curve. Therefore, option D is the best choice.