Fewer potential sellers make a firm-level demand curve ______ in the ______.
A) flatter; short run
B) flatter; long run
C) steeper; short run
D) steeper; long run

Question

Quizplus · Accepted Answer

When there are fewer potential sellers, the firm-level demand curve becomes steeper in the short run. This is because with fewer competitors, the firm has more market power and can charge a higher price without losing customers. However, in the long run, new firms may enter the market, increasing the number of potential sellers and making the demand curve flatter again.

Fewer Potential Sellers Make a Firm-Level Demand Curve ______ in the ______

Fewer Potential Sellers Make a Firm-Level Demand Curve in the