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Chapter 3: Q.14 (page 78)

Will demand curves have the same exact shape in

all markets? If not, how will they differ?

Short Answer

Expert verified

Demand curves have different shapes depending upon the type of market.

Step by step solution

01

Step 1.Demand curves shapes vary from market to market.

For perfect competition, the market demand curve is a horizontal line that indicates prices are the same for every unit sold.

02

Step 2.monopoly firm 

The demand curve for a monopoly firm is the market demand curve(downward sloping) that shows, a firm can sell more output by lowering the price.

03

Step 3.monopolistic competition 

The demand curve shape for the monopolistic competition is downward sloping which shows, a monopolistic competitor, can gain more buyers by decreasing its price and without losing all of its buyers can increase the price of its goods

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Most popular questions from this chapter

What causes a movement along the demand curve?

What causes a movement along the supply curve?

When the price is above the equilibrium, explain

how market forces move the market price to

equilibrium. Do the same when the price is below the

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Why do economists use the ceteris paribus assumption?

Suppose both of these events took place at the same time. Combine your analyses of the impacts of the iPod and the tariff reduction to determine the likely impact on the equilibrium price and quantity of Sony Walkman-type products. Show your answer graphically.

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should a reduction in the soda tax do to the supply of sodas and to the equilibrium price and quantity? Can you show this graphically? Hint: Assume that the soda tax is collected from the sellers.
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