Question : Which of the statement is correct
A: The horizontal summing of the individual demand curves results in the market demand curve.
B: The market demand curve is flatter than the individual demand curve.
Option 1: Only A true
Option 2: Only B true
Option 3: Both are true
Option 4: Both are false

Question

Question : Which of the statement is correct
A: The horizontal summing of the individual demand curves results in the market demand curve.
B: The market demand curve is flatter than the individual demand curve.

Option 1: Only A true

Option 2: Only B true

Option 3: Both are true

Option 4: Both are false

Team Careers360 · Accepted Answer

Correct Answer: Both are true

Solution : In comparison to individual demand curves, the market demand curve is flatter. This occurs because as prices fluctuate, the market's demand varies proportionately more than individual demand does.
The market demand curve is obtained by a Horizontal summation of the individual demand curves.
Hence option c is the correct answer.

Exams

Colleges

Predictors

Resources

Quick links

B.Tech CompanionUse Now Your one-stop Counselling package for JEE Main, JEE Advanced and BITSAT

Exams

Colleges & Courses

Predictors

Resources

Exams

Colleges

Predictors & E-Books

Resources

Engineering Preparation

Medical Preparation

Online Courses

Products

Exams

Colleges

Resources

Exams

Colleges

Predictors & Articles

Resources

Exams

Colleges

Predictors

Resources

NEET CompanionUse NowYour one-stop Counselling package for NEET, AIIMS and JIPMER

Exams

Colleges

Upcoming Events

Resources

Exams

Colleges

Resources

Quick Links

Top Streams

Specializations

Resources

Top Providers

Exams

Colleges

Resources

Diploma Colleges

Exams

Colleges

Resources

Exams

Resources

Top Courses & Careers

Colleges

Exams

Upcoming Events

Resources

Other Exams

Exams

Colleges

Top Countries

Student Visas

Exams

Top Schools

Products & Resources

NCERT Study Material

Question : Which of the statement is correct A: The horizontal summing of the individual demand curves results in the market demand curve. B: The market demand curve is flatter than the individual demand curve.Option 1: Only A trueOption 2: Only B trueOption 3: Both are trueOption 4: Both are false

Related Questions

Question : Assertion (A): The demand curve for the market is flatter than the demand curve for an individual. Reason (R): By horizontally summing individual demand, the market demand curve is created.

Question : Which of the following statement is correct? Statement 1:Instruments of the money market are close substitutes for money. Statement 2: Discount Finance House of India provides a ready market for money market instruments.

Question : Statement 1: An individual's indifference curve is concave to the origin. Statement 2: The concavity of indifference curves reflects the diminishing marginal rate of substitution.

Question : Which of the following statement is correct? Statement 1:Primary Market promotes capital formation directly. Statement 2: Only buying of securities takes place in the Primary Market.

Question : Which of the following statement is correct? Statement 1: In the capital market transactions are made in the short term securities Statement 2: It is the nature of the capital market to established balance between the supply and the demand side.

Trending Articles/News

Sign In/Sign Up

Download the Careers360 App on your Android phone

B.Tech CompanionUse Now
Your one-stop Counselling package for JEE Main, JEE Advanced and BITSAT

NEET CompanionUse Now
Your one-stop Counselling package for NEET, AIIMS and JIPMER

Question : Assertion (A): The demand curve for the market is flatter than the demand curve for an individual.

Reason (R): By horizontally summing individual demand, the market demand curve is created.

Question : Which of the following statement is correct?
Statement 1:Instruments of the money market are close substitutes for money.
Statement 2: Discount Finance House of India provides a ready market for money market instruments.

Question : Statement 1: An individual's indifference curve is concave to the origin.

Statement 2: The concavity of indifference curves reflects the diminishing marginal rate of substitution.

Question : Which of the following statement is correct?
Statement 1:Primary Market promotes capital formation directly.
Statement 2: Only buying of securities takes place in the Primary Market.

Question : Which of the following statement is correct?
Statement 1: In the capital market transactions are made in the short term securities
Statement 2: It is the nature of the capital market to established balance between the supply and the demand side.