A farmer in the Midwest who produces wheat faces a horizontal demand curve because _____

Question

Quizplus · Accepted Answer

A horizontal demand curve implies that the individual farmer's output is insignificant compared to the total supply in the market. Therefore, the quantity the farmer supplies has no impact on the market price of wheat, resulting in a horizontal demand curve. This is more likely to occur when there are many producers of a commodity, and each producer's output is small relative to the total market supply.

A Farmer in the Midwest Who Produces Wheat Faces a Horizontal