Advertisements
Advertisements
Question
With the help of a diagram, show how a market demand curve can be obtained from individual demand curves.
Solution
Market demand curve is obtained by horizontal summation of individual demand curves which means the sum of quantity demanded, not price.
In the diagram, DA & DB are two demand curves of A and B respectively. Supposing that there are two individuals in the market, market demand curve DM has been derived by taking their horizontal sum. Which means the sum of quantity demanded, not price.
APPEARS IN
RELATED QUESTIONS
The market demand curve is a ______ summation of all Individual demand curves:
What does the graph below indicate?
Assertion (A): If the income of a consumer increases, other things constant, the demand curve for a normal goods shifts to the right.
Reason (R): As income increases, the demand curve for an inferior good shifts to the left.
Draw a neat labelled diagram of a demand curve.
What does the demand curve given below show?
Explain the following diagram:
Give two reasons for the shift of the demand curve towards the left.
Give two reasons for the shift of the demand curve towards the right.
In 2002, the prices of gold nearly tripled. yet, as the price of gold rose its sales too increased. Does this mean that the demand curve for gold is upward sloping? Justify your answer.
Draw a demand curve on the basis of the following data.
| Price per unit (₹) | 2 | 3 | 4 | 5 | 6 | 7 |
| Quantity demanded (Units) | 1000 | 800 | 700 | 600 | 500 | 200 |
