Question

Given the demand curve faced by a firm in a price searcher market, which of the following is not possible a. charging a higher price while selling fewer products b. selling more products, but a lower price c. selling fewer products at a lower price d. selling more products at a higher price a Oь с

Answer 1

The demand curve for a firm in a price-searcher market is always downward sloping.

This means that the firm can sell fewer products at a higher price while, higher number of products at a lower price.

Here, option c is not possible as the firm will sell more products at a lower price. Thus, option c is the correct answer.