Given the individual demand schedules for dark chocolate in the accompanying table, which of the following best describes how to derive the market demand curve for dark chocolate?

• A. Multiply the quantities demanded by the number of individuals in the market.
• B. Sum the quantities demanded by all individuals at each price level.
• C. Average the prices at which each individual is willing to buy dark chocolate.
• D. Select the highest quantity demanded at each price from the individual schedules.

Answer: (B)

Verified step by step guidance

1. Understand that the market demand curve represents the total quantity demanded by all consumers in the market at each price level.
2. Recognize that individual demand schedules show the quantity demanded by a single consumer at various prices.
3. To derive the market demand curve, you need to add up (sum) the quantities demanded by all individuals at each specific price point, rather than multiplying or averaging prices or selecting the highest quantity.
4. Formally, if there are n individuals, and \(Q_i(P)\) represents the quantity demanded by individual i at price P, then the market demand \(Q_{market}(P)\) is given by: \[Q_{market}(P) = \sum_{i=1}^n Q_i(P)\]
5. Plot the resulting summed quantities against the corresponding prices to obtain the market demand curve.