We Are Given the Individual Demand Curves for All of the People

question 186

Multiple Choice

We are given the individual demand curves for all of the people that consume Good Y. Which statement is true about the market demand curve for Good Y?

• A) The market demand curve is obtained by horizontally summing the individual demand curves.
• B) The market demand curve is obtained by vertically summing the individual demand curves.
• C) The market demand curve cannot be obtained because information on prices is missing.
• D) The market demand curve cannot be obtained from individual demand curves.

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Definitions:

Construct Validity

The extent to which a test or instrument measures the theoretical construct it's intended to measure.

Experimenter Bias

The possibility that the experimenter’s knowledge of the condition a particular participant is in could affect her behavior toward the participant and thereby introduce a confounding variable to the independent variable manipulation.

Conceptual Replications

A method in scientific research where a study is conducted again with the same hypotheses but different methods or in different contexts to validate the original findings.

Random Assignment

A method used in experiments to assign participants to different groups in a way that each participant has an equal chance of being placed in any group.