Market demand is based on the:

• A. sum of all individual consumers' quantities demanded at each price
• B. minimum price consumers are willing to pay
• C. average price set by producers in the market
• D. total supply of goods available in the market

Answer: (A)

Verified step by step guidance

1. Understand that market demand represents the total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.
2. Recall that individual demand curves show the quantity demanded by a single consumer at different prices.
3. To find the market demand curve, sum the quantities demanded by all individual consumers at each price level. This means adding up the quantities horizontally across individual demand curves.
4. Recognize that market demand is not about the minimum price consumers are willing to pay, the average price set by producers, or the total supply available; it specifically relates to the aggregation of individual demands.
5. Therefore, the market demand is the sum of all individual consumers' quantities demanded at each price.