In competitive markets, the demand curve faced by the individual firm is:
perfectly inelastic.
perfectly elastic.
equal to the market demand curve.
downward sloping.
In competitive markets, the demand curve faced by the individual firm is perfectly elastic. This means that the firm can sell any quantity of its product at the market price, but it cannot influence the price by changing its output. If the firm tries to charge a higher price, consumers will buy from other firms instead.