In my most recent post, I quickly defined what demand is in economics. However, my readers might ask; How does someone build such demand curves? My answer is that one shall add the quantities at each price point for all the consumers in the market. This process is known as horizontal summation.
Consider this problem: you are tasked with finding the demand for a market that only contains two consumers; consumer A and consumer B. If their demand schedules can be respectively modeled by the following equations:
Now let's graph that:
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