Which of the Following Statements Is Correct

question 1

Multiple Choice

Which of the following statements is correct?

• A) The demand curve of the perfectly competitive industry is elastic as are the demand curves facing the individual firms.
• B) The market demand curve of perfect competition is inelastic 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 of an individual firm is horizontal with a height equal to the product price.
• 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.