PERFECT COMPETITION

MARKET FORMS are classified on the basis of intensity of competition. More the competition

• More the power to influence price

• Less the power to influence price

In a perfectly competitive market individual firms have the power to influence price.

• True

• False

In Perfect Competition there are large number of buyers but less sellers.

• False

• True

Equilibrium price is determined at the ___________ of demand and supply curves.

Demand is directly related to price. As price of a good increases its demand also increases.

• True

• False

Supply of a good has a direct relation with the price of the good. Price increases supply increases.

• True

• False

Excess Demand is wiped off by _________ the price of the good.

• increasing

• decreasing

• not changing