The Market Demand Curve

question 246

Multiple Choice

The market demand curve

• A) cannot show how quantity demanded changes in response to a change in price.
• B) cannot show a change in demand for a good.
• C) is the horizontal sum of individual demand curves.
• D) is the vertical sum of individual demand curves.
• E) is upward sloping.

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Definitions:

Consumes

To use up resources or goods, typically in the context of eating, drinking or utilizing products to satisfy needs or wants.

Utility Function

A mathematical representation that describes how consumers rank different bundles of goods according to their level of satisfaction or utility.

Consumption

The process by which goods and services are utilized by consumers, influencing economic activity and growth.

Income

The monetary payment received for one's work (wages), investments, or other sources such as pensions or government aid.