The demand curve for the homogeneous product of a perfectly competitive industry is determined by the preferences of consumers.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, producers are price takers and the demand curve is determined by the consumers' willingness to pay for the product. The preferences and behavior of consumers ultimately determine the demand for the product, which in turn affects the market price.

The Demand Curve for the Homogeneous Product of a Perfectly