Use the following diagram to answer a, b, and c.

a. Illustrate the relationship between a perfectly competitive firm€™s demand curve and the market supply and demand curve.
b. Illustrate the effects of an increase in market demand on a perfectly competitive firm€™s demand curve.
c. Illustrate the effects of a decrease in market demand on a perfectly competitive firm€™s demandcurve.

Transcribed Image Text:

0 100 200 150 Quantity Quantity