Which of the following statements about market demand curves is true?
A)Only similar demand curves can be summed to make market demand.
B)Market demand curves are usually shaped similar to individual demand curves.
C)The inclusion of many individuals' demand curves makes market demand smooth.
D)Market demand shifts upward as each additional individual demand curve is added.
E)Market demand shifts downward as each additional individual demand curve is added.

Question

Quizplus · Accepted Answer

The inclusion of many individuals' demand curves in market demand tends to smooth out fluctuations and create a more stable overall demand curve. This is because individual preferences and circumstances can vary widely, but when aggregated, common trends and behaviors become more apparent. A and B are both false statements, as different demand curves can be summed to make market demand, and market demand curves may have different shapes than individual demand curves. D and E are also false, as market demand does not necessarily shift upward or downward with additional individuals.

Which of the Following Statements About Market Demand Curves Is