Question

difference between perceived demand curve and proportional demand curve?

Answer 1

Thank you for asking this question.

Perceived Demand curve:

When there is an increase in demand of a quantity of a firm  and firm has cut down its cost while prices by others are kept at the same level that is represented in a perceived demand curve.

 

Proportional Demand Curve :

When all the sellers are charging at same price, firm faces the demand curve falls in this category. It is represented by Dp.

Answer 2

Both perceived and proportional curves show the demand for a product by a seller under two different conditions.

The perceived curve illustrates the seller’s expectations for his/her product when he/she reduces the price for his/her product while other sellers keep their price constant for the same product.

The proportional curve illustrates the seller’s expectations for his/her product when he/she reduces the price for his/her product when all competing sellers including him/her charge the same price for the same product.