In perfect competition
A) the market demand curve and the individual's demand are identical.
B) the market demand curve is perfectly inelastic while demand for an individual seller's product is perfectly elastic.
C) the market demand curve is perfectly elastic while demand for an individual seller's product is perfectly inelastic.
D) the market demand curve is downward sloping while demand for an individual seller's product is perfectly elastic.

Question

Quizplus · Accepted Answer

In perfect competition, the market demand curve is downward sloping due to the law of demand, but an individual firm's demand curve is perfectly elastic because they are price takers and can sell any quantity at the market price.

In Perfect Competition