If the consumption decisions of individual consumers are independent, then
A) the market demand curve will be flatter because of the bandwagon effect.
B) the market demand curve will be steeper because of the snob effect.
C) the market demand curve will not be equal to the horizontal summation of the demand curves of individual consumers.
D) None of the above is correct.

Question

Quizplus · Accepted Answer

If the consumption decisions of individual consumers are independent, it means that their decisions do not influence each other, negating the bandwagon and snob effects. The market demand curve indeed equals the horizontal summation of the demand curves of individual consumers when their decisions are independent, making the other statements incorrect.

If the Consumption Decisions of Individual Consumers Are Independent, Then