Determine the market demand curve, Managerial Economics

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Determine the Market demand curve

Market demand curve is the horizontal summation of individual demand curves. The individual demand schedules plotted graphically and summed up horizontally provides the market demand curve as displayed in Figure below.

The individual demands for commodity X are provided by DA, DB and Dc, correspondingly. Horizontal summation of these individual demand curves results into market demand curve (DM) for the commodity X. Curve DM represents the market demand curve for commodity X when there are just three consumers of the commodity.

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