The demand curve for an individual seller's product in perfect competition is
A)the same as market demand.
B)downward sloping.
C)vertical.
D)horizontal.

Question

Quizplus · Accepted Answer

In perfect competition, each seller is a price taker and cannot influence the price at which they sell their product. Therefore, the demand curve for an individual seller's product in perfect competition is perfectly elastic or horizontal at the market price. Any attempt by the seller to charge a price higher than the market price would result in no sales as buyers have perfect information and can easily switch to another seller selling at the same price.

The Demand Curve for an Individual Seller's Product in Perfect