Demonstrate graphically and explain verbally how a demand curve facing a perfectly competitive firm relates to the market demand curve.

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The Answer is The demand curve facing a perfectly competitive firm is perfectly elastic at the price level that is determined by the equilibrium of the market demand and market supply curves. This can be illustrated as follows: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7145/11ead704_62d9_991e_9e2d_f108bc7cc27a_TB7145_00.jpg" alt="The demand curve facing a perfectly competitive firm is perfectly elastic at the price level that is determined by the equilibrium of the market demand and market supply curves. This can be illustrated as follows:  " class="answers-bank-image d-block" rel="preload" >

Demonstrate Graphically and Explain Verbally How a Demand Curve Facing