Principles of Microeconomics / Unit 7 MIC 0603 short lesson, about 20 seconds
The Firm's Demand Curve Is Flat
Captions available
The idea
The market demand curve slopes down, but the demand curve facing one small firm is horizontal at the market price: perfectly elastic.
In practice
Raise the price a cent and every buyer walks to the next farm.
Where people slip
Two diagrams, two curves: capital D for the market, small d for the firm. Never confuse them.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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