Asked by bilge ya?ar on Jun 23, 2024
Verified
In pure competition, the industry demand curve is infinitely price elastic.
Industry Demand Curve
Represents the total demand for a product or service across all consumers in a given market, showing how quantity demanded varies with price.
Infinitely Price Elastic
Describes a situation where the quantity demanded or supplied changes by an unlimited amount in response to any change in price.
- Recognize the aspects that characterize a purely competitive market.
Verified Answer
MB
Miles BridgettJun 28, 2024
Final Answer :
False
Explanation :
In pure competition, it is the individual firm's demand curve that is infinitely price elastic, not the industry demand curve. The industry demand curve can have a normal downward slope, indicating some degree of price sensitivity.
Learning Objectives
- Recognize the aspects that characterize a purely competitive market.
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