There are five hundred buyers in the market for cheese.If we know each individual's demand curves,to find the market demand,we must
A) add the prices that each buyer will pay at every quantity.
B) add the quantities that each buyer will purchase at every price.
C) multiply the price times quantity for each buyer and then add the resulting products together.
D) average the price each buyer is willing to pay for each given quantity.
E) give up because there is no way to find the market demand.

Question

Quizplus · Accepted Answer

To find the market demand, we need to add the quantities that each buyer will purchase at every price. This will give us the total quantity demanded for each price point, which represents the market demand. Adding prices (A) or multiplying price and quantity (C) can give us individual buyer demand, but not market demand. Average price (D) also does not give us market demand. Giving up (E) is not necessary as market demand can be calculated through adding individual demands.

There Are Five Hundred Buyers in the Market for Cheese