The market demand curve for a perfectly competitive industry is typically

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The market demand curve for a perfectly competitive industry is downward sloping because as the price of a good decreases, the quantity demanded increases. This is due to the law of demand, which states that there is an inverse relationship between price and quantity demanded. In a perfectly competitive market, all firms are price takers, meaning they must accept the market price as given. Therefore, the demand curve for an individual firm is perfectly elastic (horizontal), while the market demand curve is downward sloping.

The Market Demand Curve for a Perfectly Competitive Industry Is