2 out of 2 points
Is pure competition a "desirable" market model for all industries? Should industries aspire for
pure competition? Why or why not?
Perfect competition is a desirable model for most industries. Industries can achieve pareto
efficiency in this form of market
Analyze 5 reasons why demand for this product could shift.
1. If the price of the product decreases, the demand will go up and shift
to the right on the demand curve
2. If the price of the product increases, the demand will go down and
shift to the left
Pick an industry, not mentioned in the text, which meets the criteria for perfect
competition. How does this industry fit into the perfectly competitive model?
The jewelry industry is a form of a perfectly competitive market. There are a large number of
DETERMINANTS OF SUPPLY AND DEMAND 1
Determinants of Supply and Demand
Jeremy A. Jester
ECO 260: Microeconomics
DETERMINANTS OF SUPPLY AND DEMAND 2
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