Question

Assume 3 consumers comprise the demand-side of the market for snow-cones. If given the consumers' three individual demand curves, how would you construct a market demand curve

Answer 1

Answer:

Explanation:

Demand can be defined as the amount or quantity of goods and services which a consumer is willing to buy coupled with the ability to pay at a given price at a particular time. The demand curve, therefore, shows the relationship between the price of goods and the quantity demanded.

Now, from the given question, The market demand curve can be constructed by:

Adding demand curves horizontally (picking a price and adding together all the quantities demanded at that price)