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At a given pr...

Question

At a given price, every seller can sell any amount of output in the market. What will be the shape of the demand curve in perfect competition?

A

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B

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C

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D

None of the above

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Solution

The correct option is A

When price remains the same at all levels of output, the demand curve will be horizontal in shape which is parallel to the X-axis. OP is the price level fixed on the basis of demand and supply forces in the market.

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