Asked by
David Allen
on Oct 12, 2024
Verified
The perfect competitor's demand curve is
A) perfectly elastic.
B) perfectly inelastic.
C) highly elastiC.
D) highly inelastic.
Perfect Competitor's Demand Curve
A horizontal line reflecting a perfectly elastic demand situation where the firm can sell any quantity at the prevailing market price.
Perfectly Elastic
Describes a situation where the quantity demanded or supplied responds infinitely or extremely to changes in price.
Highly Inelastic
Describes demand that is hardly responsive to changes in price, typically for necessities where consumption does not decrease significantly with a price increase.
- Discuss the demand curve presented to perfectly competitive firms and its effects.
Verified Answer
JL
Learning Objectives
- Discuss the demand curve presented to perfectly competitive firms and its effects.