If a Firm Facing a Perfectly Elastic Demand Curve Raises

question 39

Multiple Choice

If a firm facing a perfectly elastic demand curve raises its price,

• A)it will still sell exactly the same amount of output as it did at the lower price
• B)it will lose some, but not all, of its sales
• C)its sales will decrease to zero
• D)its sales will increase
• E)it is impossible to predict what will happen to its sales

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Definitions:

Social Loneliness

The feeling of being isolated or alone due to a lack of meaningful connections or social interactions with others.

Quantity

The amount or number of a material or immaterial entity that can be measured.

Friendship

A personal bond or relationship between individuals characterized by mutual affection, trust, and support.

Transitional Loneliness

The feeling of loneliness and isolation that can occur during significant changes or transitions in a person's life.