The perfect competitor's demand curve is

A) perfectly elastic.
B) relatively elastic.
C) relatively inelastiC.
D) perfectly inelastic.

Question

The perfect competitor's demand curve isA) perfectly elastic.B) relatively elastic.C) relatively inelastiC.D) perfectly inelastic.

Samantha Mae David · Accepted Answer

Final Answer : A, Explanation :  A perfectly competitive market has a large number of small firms producing homogenous products. As a result, each firm is too small to influence the market price, meaning that the price is given for each firm. Therefore, the demand curve faced by a perfectly competitive firm is perfectly elastic, meaning that the firm can sell as much output as it wishes at the market price.

The perfect competitor's demand curve is

A) perfectly elastic.
B) relatively elastic.
C) relatively inelastiC.
D) perfectly inelastic.

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