In pure competition, the market demand curve for a product:
A) and the demand curve for an individual seller's product are both horizontal.
B) and the demand curve for an individual seller's product are both downward sloping.
C) is downward sloping, but the demand curve for an individual seller's product is horizontal.
D) is horizontal, but the demand curve for an individual seller's product is downward sloping.

Question

Quizplus · Accepted Answer

In pure competition, the market demand curve is downward sloping, reflecting the overall market's decreasing willingness to pay as quantity increases. However, the demand curve for an individual seller's product is horizontal, indicating that the seller is a price taker and can sell any quantity at the market price due to the product being perfectly substitutable with those of other sellers.

In Pure Competition, the Market Demand Curve for a Product