Question

A market demand curve is derived by A. adding horizontally the individual marginal utility curves. B. adding horizontally the individual demand curves. C. adding vertically the individual demand curves. D. adding the substitution effect and the price effect.

Answer 1

B. adding horizontally the individual demand curves.

Step-by-step explanation:

A market demand curve -

For a given market , the sum of the individual demand curves is known as the market demand curve .

The curve help us to determine the demand of the quantity of the goods by all the people at the different price point .

Hence , a market demand curve is derived via horizontally adding all the individual demand curves .