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:

Equality

The condition of having identical status, rights, and chances.

Slaves and Slavery

The forced bondage and labor of people, where individuals are owned by others, a practice historically found in various cultures and societies around the world.

1770s and 1780s

The decades marking the American Revolutionary War and the formative years of the United States, leading to the adoption of the Constitution.