Managerial Economicsbasic
Market demand is found by combining the quantities demanded by buyers at each price, rather than by choosing one particular market place.
Answer
true
Explanation
### Why this is right
Market demand aggregates buyers' quantities at each price in a commodity market. The term market refers to the market for a good, such as eggs, not necessarily a physical location.
### The concept
To construct market demand, economists add the quantities individual buyers would purchase at the same price. The resulting schedule shows the total quantity all buyers would purchase at alternative prices during a stated period. This is more informative for market analysis than any one consumer's schedule.
### Terms
- **Market demand**: the total quantities all buyers would purchase at different prices in a specified period.
- **Commodity market**: the market for a particular good or service, whether or not it occupies one physical place.
### Remember
Add buyers horizontally at each price to obtain market demand.
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