The market demand curve for all consumers is derived by adding horizontally the separate demand curves of each consumer.

Question

Quizplus · Accepted Answer

This is the correct statement describing how the market demand curve is derived. The market demand curve represents the quantity of a good or service that all consumers are willing and able to purchase at different prices, and it is obtained by adding up the individual demand curves of each consumer in the market. The aggregate demand reveals how the total demand for a homogeneous product or service changes as the price increases or decreases, and it is an essential tool for businesses and policymakers to understand the dynamics of the marketplace.

The Market Demand Curve for All Consumers Is Derived by Adding