Question

To get the market demand curve for a product, why do we add individual demand curves horizontally rather than vertically?

Answer 1

Answer:

To get the market demand curve for a product, why do we add individual demand curves horizontally rather than vertically? ... There will be a fall in total expenditure with an increase in the prices of demand-elastic goods, and an increase in total expenditure with an increase in the prices of demand-inelastic goods.

Answer 2

To get the market demand curve, it is horizontal as the quantity demanded is dependent variable on the horizontal axis, while price an independent variable is on the vertical axis.

• Horizontal summation of demand curves gives us a private good's curve of competition on the market.
• Generally it is plotted on the vertical axis y with the price being on the horizontal axis x.
• Therefore, a horizontal overview is done, a quantity demanded by all consumers on the market at every level is added.