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MAVERICK [17]
3 years ago
11

The idea that as the quantity of an input increases, the additional output decreases (holding all else constant is called the La

w of Answer.
Business
1 answer:
Alina [70]3 years ago
4 0
 It is called the law of demand and supply whereby when the supply of commodity increases, the need reduces. The market becomes flooded with the items while the number of customers is constant. Moreover, when the supply of a good diminishes its demand goes up.
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It is true that a perfectly competitive industry faces a horizontal straight line demand curve whereas a monopoly faces a downward sloping demand curve.

<h3>What is competitive market?</h3>

A perfect competitive market has a straight line graph on the demand of goods and services this means that the goods are sold at the market price. Monopoly market price are not regulated hence the curve is not straight.

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