Question:

The demand curve for a perfectly competitive firm

A.

slopes downward as the quantity demanded increases as the firm lowers price

B.

is a horizontal, perfectly elastic demand curve at the market price

C.

is a straight, downward sloping curve that is price elastic at higher prices and price inelastic as price falls and approaches zero

D.

both (b) and (c)

Answer» b. is a horizontal, perfectly elastic demand curve at the market price