Q. The demand curve for a perfectly competitive firm (Solved)
1. slopes downward as the quantity demanded increases as the firm lowers price
2. is a horizontal, perfectly elastic demand curve at the market price
3. is a straight, downward sloping curve that is price elastic at higher prices and price inelastic as price falls and approaches zero
4. both (b) and (c)
- b. is a horizontal, perfectly elastic demand curve at the market price