How does the demand for any one seller's product in perfect competition compare to the market demand for that product?
A) They are identical.
B) The demand for any one seller is proportionally smaller but otherwise identical to the market demand.
C) The demand for any one seller's product is perfectly elastic while the market demand curve is downward sloping.
D) There is no demand for any one seller's competitively sold product.
E) The demand for any one seller's product is not perfectly elastic while the market demand is perfectly elastic.

Question

Quizplus · Accepted Answer

In perfect competition, each seller faces a perfectly elastic demand curve because buyers can easily switch to other sellers if the price increases, reflecting the product's perfect substitutability. However, the market demand curve for the product as a whole is downward sloping, indicating that the total market demand decreases as the price increases.

How Does the Demand for Any One Seller's Product in Perfect