Which of the Following Statements Is Correct About the Demand

question 130

Multiple Choice

Which of the following statements is correct about the demand curve of the perfectly competitive industry?

• A) The demand curve of the perfectly competitive industry is horizontal as are the demand curves facing the individual firms.
• B) The market demand curve of perfect competition is vertical because the individual consumers are buying a homogeneous product.
• C) The market demand curve of the perfectly competitive industry is downward sloping while the demand curve facing an individual firm is horizontal.
• D) The market demand curve of the perfectly competitive industry is downward sloping, so the demand curves of the individual firms are also downward sloping.

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Definitions:

Free Blacks

African Americans who were not enslaved and lived freely during the times of slavery in the United States.

Dependence

A state in which one entity relies on another for support, sustenance, or survival, often used in economic, social, or substance use contexts.

Trade

The exchange of goods and services between two or more parties.

Tuscarora War

A conflict between the British, Dutch, and German settlers and the Tuscarora Native Americans in North Carolina during the early 18th century.