A price maker faces a:

Question

Quizplus · Accepted Answer

A price maker faces a downward sloping demand curve, which means that as the price of the product increases, the quantity demanded decreases. This gives the price maker the power to set a higher price and still sell their product, as long as the demand remains relatively high. Elastic demand curves are associated with price takers, as a small change in price will result in a large change in quantity demanded. Inelastic demand curves are also associated with price takers, as a change in price will have little effect on the quantity demanded. Horizontal demand curves are associated with perfect competition, where there are many sellers with the same product at the same price.

A Price Maker Faces A