Asked by Alicia Franchi on Sep 23, 2024
Verified
What is an aggregate demand curve
A) The demand of an individual with respect to price
B) The total demand of the market with respect to price of a good
C) The preference of an individual in the market
D) None of the above
Aggregate Demand Curve
Describes the buying behavior of a group of consumers. We add up all the individual demand curves to get an aggregate demand curve (the relationship between the price and the number of purchases made by a group of consumers).
Total Demand
Represents the entire quantity of a certain product or service that consumers in a market are willing and able to purchase at a given price level.
Market
A physical or virtual space where buyers and sellers interact to exchange goods, services, or information.
- Familiarize oneself with the understanding and mathematical assessment of elasticity in demand for individual consumers and the market as a whole.
Verified Answer
KP
Khushi Patel3 days ago
Final Answer :
B
Explanation :
An aggregate demand curve represents the total demand for a good or service in a market at different price levels. It is not specific to an individual's demand or preference.
Learning Objectives
- Familiarize oneself with the understanding and mathematical assessment of elasticity in demand for individual consumers and the market as a whole.