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Did you notice that the market demand curve is flatter than Srivalli’s individual demand curve? Why is that?

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Question

Did you notice that the market demand curve is flatter than Srivalli’s individual demand curve? Why is that? 

Short Answer
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Solution

Yes, the market demand curve is flatter because it represents the combined demand of many consumers. Therefore, a change in price causes a larger change in the total quantity demanded than in the demand of a single consumer, making the market demand curve more responsive to price changes.

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Chapter 9: The Price Puzzle: What Drives the Market - Intext Questions [Page 198]

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NCERT Social Science Understanding Society India and Beyond Part 1 [English] Class 9
Chapter 9 The Price Puzzle: What Drives the Market
Intext Questions | Q 5. | Page 198
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