Managerial Economicsbasic
The market demand curve is derived by the _____ summation of all individual demand curves.
Answer
horizontal
Explanation
### Why this is right
Market demand combines the quantities demanded by all buyers in the commodity market. At each price, their individual quantities are added to obtain the market quantity.
### The concept
Individual demand concerns one buyer. Market demand aggregates buyers, making it useful for analyzing total demand facing sellers in a market.
### Remember
Market demand is the sum of individual buyers' quantities at each price.
Related Questions
- Which description best defines managerial economics?(basic)
- Under the SMARTTS framework, an objective with a stated deadline is _____.(basic)
- An increase in income always moves a consumer to a different point on the same demand curve.(intermediate)
- A price above equilibrium creates excess demand and tends to push price upward.(basic)
- What does a production function represent?(basic)
Want to practice more questions like this?
Join myBenkio free and practice past questions for your Nigerian university courses with AI explanations for every answer.
Start Practicing Free