The demand curve in a purely competitive industry is ______, while the demand curve to a single firm in that industry is ______.
A)perfectly inelastic; perfectly elastic
B)downsloping; perfectly elastic
C)downsloping; perfectly inelastic
D)perfectly elastic; downsloping

Question

Quizplus · Accepted Answer

The demand curve in a purely competitive industry is downsloping, reflecting the overall market demand. However, the demand curve for a single firm in such an industry is perfectly elastic, indicating that the firm can sell any quantity of its product at the market price due to the presence of many competitors offering identical products.

The Demand Curve in a Purely Competitive Industry Is ______