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Question
The market demand curve is a ______ summation of all Individual demand curves:
Options
Vertical
Lateral
Downward
None of the above
Solution
The market demand curve is a lateral summation of all Individual demand curves:
Explanation:
The market demand curve is a lateral summation of all individual demand curves. This means that it is obtained by adding the quantities demanded by all individuals at each price level, effectively summing the individual demand curves horizontally.
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