The demand curve facing a dominant firm in the price leadership model is derived by subtracting the

A) amount supplied by the smaller firms from market demand.
B) amount supplied by the smaller firms from market supply.
C) amount demanded by customers from the smaller firms from market supply.
D) dominant firm's marginal cost curve from the industry's supply curve.

Demand Curve

The Demand Curve depicts the relationship between the price of a product and the amount of it that consumers are willing to purchase at various prices, usually sloping downward from left to right.

Dominant Firm

A company with a significant market share or influence, often capable of setting prices within its industry.

Price Leadership Model

A market condition where one leading company sets the price of goods or services, and other companies in the sector follow suit, either explicitly or implicitly.