Question

Why is demand curve for an individual firm horizontal

Answer 1

Explanation:

Demand Curve for a Firm in a Perfectly Competitive Market: The demand curve for an individual firm is equal to the equilibrium price of the market. The market demand curve is downward-sloping. ... The horizontal demand curve indicates that the elasticity of demand for the good is perfectly elastic.

Answer 2

Explanation:

Demand Curve for a Firm in a Perfectly Competitive Market: The demand curve for an individual firm is equal to the equilibrium price of the market. The market demand curve is downward-sloping. ... The horizontal demand curve indicates that the elasticity of demand for the good is perfectly elastic.

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