Question

The demand curve________.

(A) represents the reservation prices of each consumer in the marketplace.
(B) represents the marginal benefit to consumers of each unit of the good.
(C) represents the sum of the individual demand curves of each market participant.
(D) All of the above are correct.

Answer 1

Answer:

The correct answer is letter "C": represents the sum of the individual demand curves of each market participant.

Explanation:

Individual demand curves represent the relationship a particular consumer has between the quantity demanded for a given product or service and the price that individual is willing to pay. When the demand curves of all individuals in a market is placed in one graph, the result is the demand curve of that good or service of the overall market.