Aggregate Demand and Aggregate Supply
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An aggregate demand curve is simply a schedule that shows amounts of a product that buyers collectively desire to purchase at each possible price level.
An aggregate supply curve is simply a curve showing the amounts of a product that all firms will produce at each price level.
Refer to the graph below. What is the market quantity that would be supplied at a price of $2.00?
Market quantity is the sum of individual quantities supplied at each price. At a price of $2.00, Ann supplies 4, Barry supplies 3, and Charlie supplies 0. The market supply is 7.