The demand curve that an individual competitive firm faces is known as its

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The demand curve that an individual competitive firm faces is known as its residual demand curve. This is because the firm is a price taker and can only sell at the market price determined by the intersection of the market supply and demand curves. Therefore, the demand curve that the firm faces is what is leftover or residual after the aggregate demand for the market has been determined. Option A is incorrect because excess demand refers to a situation where demand exceeds supply. Option B is incorrect because the market demand curve shows the quantity of a good or service that all consumers in a market are willing and able to buy at different prices. Option D is incorrect because there is no such thing as a leftover demand curve.

The Demand Curve That an Individual Competitive Firm Faces Is