The demand curve faced by a single perfectly competitive firm is:

A) perfectly inelastic.
B) perfectly elastic.
C) downward sloping.
D) relatively but not perfectly elastic.

Perfect Competition

A market structure characterized by many buyers and sellers, freedom of entry and exit, and a homogeneous product.

Perfectly Elastic

A situation in economic theory where the quantity demanded or supplied of a good changes infinitely in response to any change in price.

Demand Curve

A diagram depicting how the demand for an item varies with its price, generally characterized by a downward trajectory.