The term for the sum of all individual demands in a market is which of the following?

The term for the sum of all individual demands in a market is which of the following?

• A. Aggregation
• B. Demand
• C. Market Forces
• D. Elasticity

Answer: (A)

Think about the market as a whole: if you add up every individual’s demand for a good at a given price, you get the total quantity that the market would buy. That total is called aggregate demand. Aggregation is the act of combining those individual demands to form that market total. The other terms describe related ideas but don’t name the whole-market demand: demand refers more to the quantity a single buyer (or the idea of demand in general) represents; market forces are the factors that influence demand and supply; elasticity measures how strongly demand responds to price changes.

Think about the market as a whole: if you add up every individual’s demand for a good at a given price, you get the total quantity that the market would buy. That total is called aggregate demand. Aggregation is the act of combining those individual demands to form that market total. The other terms describe related ideas but don’t name the whole-market demand: demand refers more to the quantity a single buyer (or the idea of demand in general) represents; market forces are the factors that influence demand and supply; elasticity measures how strongly demand responds to price changes.