Question

The market demand curve a. shows the average quantity demanded by individual demanders at each price. b. is the demand curve for every product in an industry. c. is the sum of all individual demand curves. d. is always flatter than an individual demand curve.

Answer 1

Answer:

The correct answer is option c.

Explanation:

A market demand curve shows the quantity demanded at different prices by all individuals. It is the summation of individual demand curves.

The downward-sloping curve shows the relationship between the price level and the quantity demanded. That when the price level increases, the quantity demanded decreases and vice versa. The other factors such as population, income, price of other goods, tastes and preferences are assumed to be constant.