In a price taker graph, the demand curve is horizontal because the firm can sell any quantity of the good at the market price set by the industry.
In economics, a firm in a perfect competitive can sell any quantity at the market price. How much would it sell if it increased its price? Explain in one sentence.
If a firm in a perfectly competitive market increases its price, it will not sell any quantity as consumers have the option to purchase the same good at the market price set by the industry.
Where will the consumers purchase the same good? Please give a one sentence answer to the previous question with the new one as well.
Consumers will purchase the same good from other firms at the market price if one firm in a perfectly competitive market increases its price.
