Question

Describe the derivation of Individual and market demand curve. (Its a 20 marks question)

Answer 1

Answer:

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It is derived by summing up horizontally the demand curve of each consumer. For each price, the quantity demanded by each consumer is added up horizontally to derive the total quantity demanded in the market. complement goods. 0 X1 X2 QA X1 X2 QA Demand for good A increases due to a decrease in the price of B.

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