Answer to Question #140279 in Microeconomics for Akriti

Question

There are N players in a perfectly competitive market each with an income of $1000.
There are 5 goods with prices 5, 6, 7, 8 and 9, respectively.
The demand function of every good for each player is given by:

Answer 1

If there are N players in a perfectly competitive market each with an income of $1000, then the demand function of every good for each player is perfectly elastic and is represented by the horizontal line.