Asked by Jennifer Osorio on Jun 14, 2024
Verified
Refer to Figure 8.3.2 above. The demand of a price taker is illustrated:
A) in panel (a) .
B) in panel (b)
C) in both panels.
D) by neither curve.
Price Taker
An entity in a market that has no control over the prices at which it buys or sells goods, typically because it is too small to influence market prices.
Demand
The quantity of a good or service that consumers are willing and able to purchase at various price levels.
- Gain an understanding of the traits and assumptions inherent in perfectly competitive markets.
Verified Answer
VC
Vikram ChauhanJun 17, 2024
Final Answer :
A
Explanation :
Panel (a) shows the demand curve of a price taker, as it depicts the relationship between the quantity demanded and the price in a perfectly competitive market. Panel (b) shows the supply curve of a price taker.
Learning Objectives
- Gain an understanding of the traits and assumptions inherent in perfectly competitive markets.