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21 August, 17:13

In perfect competition:

the market demand curve is perfectly inelastic while demand for an individual seller's product is perfectly elastic.

the market demand curve is downward sloping while demand for an individual seller's product is perfectly elastic.

the market demand curve is perfectly elastic while demand for an individual seller's product is perfectly inelastic.

the market demand curve and the individual's demand are identical.

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  1. 21 August, 17:38
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    the market demand curve is downward sloping while demand for an individual seller's product is perfectly elastic.

    Explanation:

    Perfect competition is a competition system characterized by a large number of firms offering the same type of product. This is a competitive model where none of the bidders has the ability to change the price, (they are price takers) so that if there is any attempt to raise the price, the bidder will lose all market share as consumers will buy from other market price providers. This means that demand is completely elastic - sensitive to price changes. The market demand curve is downward sloping on a chart where quantity is on the horizontal axis and price on the vertical axis. Thus, the higher the price, the lower the quantity demanded and the lower the price, the greater the quantity demanded.
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