Asked by Samantha

How can you obtain a downward sloping market demand curve from a horizontal firm demand curve experiencing perfect competition? If you sum up individual demand horizontally for the firm at the given market price will market demad not still be horizontal?
Answered by economyst
Unlike supply, the industry-wide demand curve is NOT the sum of the demand curves faced by each individual producing firm. The industry-wide demand curve is the result of summing individual consumer's demands
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