-In the Above Figure,a Negative Relationship Between Price and Quantity

question 275

Multiple Choice

-In the above figure,a negative relationship between price and quantity is shown in

• A) Figure A.
• B) Figure B.
• C) Both Figure A and Figure B.
• D) Neither Figure A nor Figure B.

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at each price level.

Purely Competitive Industry

An industry with many sellers offering identical products, where no single seller can influence market price, leading to perfect competition.

Competitive Firms

Refers to companies operating in a market where there are many sellers and buyers, products are similar, and there is free entry and exit from the market.

Price Takers

Describes individuals or companies that accept the market price as given, without having the influence to alter the price of the good or service they are selling or buying.