ECONOMICS
PRICE CEILINGS AND FLOORS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The dividend of all individual demand
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The product of all individual demand
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The quotient of all individual demand
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The sum of all individual demand
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Detailed explanation-1: -The market demand for a good describes the quantity demanded at every given price for the entire market. Remember that the entire market is made up of individual buyers with their own demand curves. This means that the market demand is the sum of all of the individual buyer’s demand curve.
Detailed explanation-2: -Market demand is the aggregate of the individual demands for a commodity from purchasers in the marketplace. If more purchasers enter the marketplace and they have the capability to pay for commodities on sale, then the market demand at each cost price degree will increase.
Detailed explanation-3: -Market demand is the sum of the individual demand for a product from buyers in the market.
Detailed explanation-4: -The market demand gives the quantity purchased by all the market participants-the sum of the individual demands-for each price. This is sometimes called a “horizontal sum” because the summation is over the quantities for each price. The market supply is the horizontal (quantity) sum of all the individual supply curves.