Siti is one of many consumers in the yellow onion market. Which of the following statements is (are) TRUE?
I. Siti's demand curve must have the same slope as that of the market demand curve.
II. Siti's demand curve must be to the right of the market demand curve.
III. Siti's demand curve is either as flat as or flatter than the market demand curve.

Question

Quizplus · Accepted Answer

III is true because an individual consumer's demand curve is typically more elastic (flatter) than the market demand curve, reflecting that the individual has more substitution options than the market as a whole. I is false because an individual's demand curve does not necessarily have the same slope as the market demand curve. II is false because an individual's demand curve represents a much smaller quantity than the market demand curve and thus cannot be to the right of the market demand curve.

Siti Is One of Many Consumers in the Yellow Onion