The Demand Curve of an Individual Perfectly Competitive Business Is

question 3

Multiple Choice

The demand curve of an individual perfectly competitive business is:

• A)horizontal at a price set by the business
• B)downward-sloping with price set solely by the forces of supply and demand
• C)perfectly inelastic
• D)horizontal at a price set by the forces of market supply and demand
• E)upward-sloping with price set solely by the forces of supply and demand

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Definitions:

Demand Exceeds

A situation where the demand for a product or service surpasses the available supply.

Stepping Stone Method

A mathematical procedure used in transportation problems of linear programming to find the least cost solution by moving from one feasible solution to another.

Reallocates

The act of distributing resources, tasks, or responsibilities again or differently, often to improve efficiency or outcomes.

Linear Programming Models

Mathematical models used to achieve the best outcome in a given mathematical model for a list of requirements represented as linear relationships.