If the market equilibrium price of pineapples (a perfectly competitive product) is $5, the demand curve for an individual pineapple farmer is

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Quizplus · Accepted Answer

In a perfectly competitive market, individual firms are price takers, meaning they have no power to influence the market price of their product. Therefore, the demand curve for an individual farmer's product is perfectly elastic (horizontal) at the market equilibrium price, which in this case is $5. This reflects the farmer's ability to sell any quantity of pineapples at the market price but inability to sell any at a higher price.

If the Market Equilibrium Price of Pineapples (A Perfectly Competitive