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In a perfectly competitive marke'ot, buyers and sellers must aozept the prioe that the market deten'ninE. The market prioe and output are determined by the intersection of the market supply and demand curves. Consequently, no buyer or seller can influence the market prioe and the...r take the market price. The; are known as: a} [2:] Use the graph to the right to illustrate what the Demand Curve would look like at F'\" for a rm in a competitive market that cannot influence the price. PRICE Perfectly Competitive Market $1 Scenario 2 PRICE The position of the individual firm's demand curve will slightly vary with every change in the market price. Sellers in a market could change MPZ* the price if demand increases. In a perfectly competitive market, it is essential that all MP1* sellers respond to information provided and adjust their price if demand changes. So, they may alter their behavior over time by revising their price/production decisions to reflect changes in market price. Suppose the Market Price for a good rose from MP1* to MP2*. What would happen to the Market Demand Curve "IF" D1 there was a positive shift in demand? q1 Use the graph to the right to illustrate a Market QUANTITY Shift in Demand. Market Supply/Demand Curve