Fill in the Blank QuestionFill in the blank question.Firms with downward-sloping product demand curves are called price .

Firms with downward-sloping product demand curves are called price makers.

This terminology stems from the basic principles of microeconomics. In markets where demand decreases as price increases, firms have some control over the pricing of their products. Unlike price takers, which are typically found in perfectly competitive markets where firms accept the market price as given, price makers can influence the price due to their market power – often stemming from brand loyalty, product differentiation, or a lack of direct competition. Price makers will strategically set their prices based on the demand curve they face, aiming to maximize their profits while taking consumer behavior and potential competitor responses into account. In essence, the decision regarding how much to supply at what price is critical for firms operating under these conditions.