-Which of these figures illustrates the behavior of the demand curve for an individual pure competitor's product when there is an increase in market supply and no change in market demand?
A) Figure A.
B) Figure B.
C) Figure C.
D) Figure D.

Question

-Which of these figures illustrates the behavior of the demand curve for an individual pure competitor's product when there is an increase in market supply and no change in market demand?
A) Figure A. 
B) Figure B. 
C) Figure C. 
D) Figure D.

Quizplus · Accepted Answer

In a purely competitive market, an increase in market supply with no change in demand leads to a decrease in the market price. For an individual pure competitor, this results in a horizontal demand curve at a lower price level, as shown in Figure A.

-Which of These Figures Illustrates the Behavior of the Demand