Question

PICK ONE FROM EACH ()

Fortunately, you recognize that the line on this graph is (a demand curve or the law of demand or a demand schedule or the quantity of toothbrush demanded) . When your friend asks you which value represents the quantity of toothbrushes demanded at a price of $8 per toothbrush, you tell him the correct answer: the value represented by the letter (x or y) .

In a perfectly competitive market, all producers sell (identical or very different) goods or services. Additionally, there are (few or many) buyers and sellers. Because of these two characteristics, both buyers and sellers in perfectly competitive markets are price (makers or takers) .

True or False: The market for digital cable does not exhibit the two primary characteristics that define perfectly competitive markets.

True or False

Answer 1

→ line on the graph is demand curve.

→it might be x(traditionally quantity demanded represented on x axis. If we plot the quantity demanded with any letter that should be said as quantity demanded. I plot Q as quantity demanded on the x axis in my figure for example)

→identical ( According to assumptions of perfectly competitive market products are homogeneous)

→many (many buyers and sellers in perfectly competitive market)

→price takers (buyers and sellers in the perfectly competitive market are price takers. They can't determine price,but market forces can)

→false(because buyers and sellers of the digital cable are price takers. Digital cables are identical. Many providers and buyers in the market)