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The reason why demand curve is always downward slopin a competitive market is because there are many sellers and buyers in the market.so the price of a commodity in such market determines the demand and supply of that product.unlike a monopolistic market were there is just öne seller and many buyers
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A firm in a monopolistically competitive market is similar to a monopolist in the sense that it?
faces a downward-sloping demand curve
What is the shape of a market demand curve?
Usually market demand curves are downward sloping.
How does a market demand curve differ from a demand curve How are they similar?
downward sloping
What is equilibrium price in economics?
It is the price where demand equals supply in a competitive market.
What happens to prices in a free competitive market?
In a free competitive market, prices are determined by supply and demand. When demand for a product or service is high and supply is limited, prices tend to increase. Conversely, when demand is low and supply is abundant, prices tend to decrease. This dynamic process of supply and demand helps to ensure that prices in a free competitive market are set at a level that reflects the true value of goods and services.
A firm in a monopolistically competitive market is similar to a monopolist in the sense that it?
faces a downward-sloping demand curve
What is the shape of the market demand curve?
Usually market demand curves are downward sloping.
What is the shape of a market demand curve?
Usually market demand curves are downward sloping.
How does a market demand curve differ from a demand curve How are they similar?
downward sloping
In a graph of price vertical axis verses quantity horizontal demand is downward sloping because?
market demand
In a perfectly competitive market an increase in demand will in the long run generally cause?
An increase in demand in a perfectly competitive market will lead to an increase in revenue for the business. The more they sell the more they will make.
What is equilibrium price in economics?
It is the price where demand equals supply in a competitive market.
What happens to prices in a free competitive market?
In a free competitive market, prices are determined by supply and demand. When demand for a product or service is high and supply is limited, prices tend to increase. Conversely, when demand is low and supply is abundant, prices tend to decrease. This dynamic process of supply and demand helps to ensure that prices in a free competitive market are set at a level that reflects the true value of goods and services.
How can a company have a downward demand curve but still have marginal revenue equal price?
If the Demand Curve is separate from the MR=P curve, the company can not be of Perfect Competition. It can exist in any other market structure: Monopolistic Competition, Monopoly, or Imperfect Competition. In each of these three structures, the Demand Curve will always fall twice as fast as the MP=P=AR Curve. To answer your question in these terms, the company can have a downward sloping Demand Curve separate from the MR=P curve if it is not in the PC Market Structure.
In a competitive market free of government regulation?
In a competitive market free of government regulation, the price of a product will continue to adjust. The only time it will stop is when demand is equal to the quantity supplied.
In a competitive market the equilibrium price and quantity occur where?
When demand curve intersects the supply curve.
What can happen to prices in a competitive market when demand increases as supply remains the same?
increase in prices
