Question

In: Economics

As markets become more competitive what happens to the demand and supply curve? the demand curve...

As markets become more competitive what happens to the demand and supply curve?

the demand curve facing the firm steepens

the demand curve facing the firm flattens

the supply curve facing the firm steepens

the demand curve facing the firm remains the same

Solutions

Expert Solution

Demand curve facing the firm flattens

Reason: As markets become competitive, their demand curve faced by each firm becomes flat or more Elastic in nature, as number of sellers increase.

Rahul Sunny answered 2 years ago
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