Question

How is a market demand curve derived from individual demand curves?

1) Use the largest quantity demanded among all consumers for each price.
2) Add up quantities demanded by all individual consumers for each price.
3) Calculate the average quantity demanded among all consumers.
4) Add up prices paid for each unit demanded by individuals.

Answer 1

A market demand curve is derived by adding up the quantities demanded by all individual consumers for each price.

Step-by-step explanation:

A market demand curve is derived from individual demand curves by adding up the quantities demanded by all individual consumers for each price. This involves creating a demand schedule based on the various prices people are willing to pay for a product, and then using this schedule to create a graph of demand at various price points.