To Derive a Market Demand Curve from Individual Demand Curves

question 69

Multiple Choice

To derive a market demand curve from individual demand curves, it would be necessary to:

• A) take the maximum quantity of each demand curve as the market quantity demanded at each price.
• B) sum the curves horizontally, adding quantities demanded at each price.
• C) take the demand curve that is the furthest to the right as the market demand curve.
• D) multiply the quantities demanded on each demand curve at each price to find the market quantity demanded at each price.

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Definitions:

Assignee

An individual or entity to whom rights or interests have been transferred by another.

Parol Evidence

A rule that prohibits the admission of oral or extrinsic evidence to contradict, vary, or add to the terms of a written contract.

Assignor

The party in a contract who transfers rights or interests to another, known as the assignee.

Obligee

A contractual party who agreed to receive something from the other party.