In autumn, the Connecticut apple market is perfectly competitive. If market demandincreases-resulting, say, from a change in consumer taste-the demand curves faced by each individual firm will, in the long run
A) become vertical
B) become less elastic
C) remain unchanged
D) shift leftward
E) shift downward

Question

Quizplus · Accepted Answer

In a perfectly competitive market, individual firms are price takers, meaning the demand curve they face is perfectly elastic. Changes in overall market demand do not alter the elasticity of the demand curve for individual firms, but rather affect the market price. In the long run, firms adjust their output to the new market price, but the nature of the demand curve they face remains unchanged.

In Autumn, the Connecticut Apple Market Is Perfectly Competitive