Comment on the following statement: “In the short run, Mr. Mohammed, a seller in the Fruit & Vegetable Market in Al-Aweer, faces a demand curve that is simply a horizontalline at the market equilibrium price. In other words, competitive sellers, in this market, face perfectly elastic demand in the short run.”
Comment on the following statement: “In the short run, Mr. Mohammed, a seller in the Fruit & Vegetable Market in Al-Aweer, faces a demand curve that is simply a horizontalline at the market equilibrium price. In other words, competitive sellers, in this market, face perfectly elastic demand in the short run.”
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 20P
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Comment on the following statement: “In the short run, Mr. Mohammed, a seller in the Fruit
& Vegetable Market in Al-Aweer, faces a demand curve that is simply a horizontalline at the
market
elastic demand in the short run.”
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