The short-run market demand curve in perfect competition is positively sloped.

Name: The short-run market demand curve in perfect competition is positively sloped.
Brand: Quizplus
Rating: 4.9 (55 reviews)

Question

Quizplus · Accepted Answer

In perfect competition, the short-run market demand curve is perfectly elastic or horizontal, as individual firms cannot influence the market price and must accept the prevailing price. Therefore, any increase in price by a firm will lead to a complete loss of market share. As a result, the market demand curve is not positively sloped.

The Short-Run Market Demand Curve in Perfect Competition Is Positively