Which of the following describes the difference between the demand faced by a firm and the demand faced by an industry?
A. The demand facing individual firms tend to be more price-elastic than those for the entire industry.
B. The income elasticity of demand faced by a firm is higher than the income elasticity of demand faced by an industry.
C. The elasticity of demand for a firm and for an industry is the same.
D. The demand facing individual firms tend to be less price-elastic than those for the entire industry.
Answer: A
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