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:

Feminized

Made to possess qualities traditionally associated with females; often used in context of plants or animals, indicating induced development of female characteristics.

Testosterone

A steroid hormone primarily produced in the testicles of males and the ovaries of females, playing a key role in the development of male reproductive tissues and characteristics.

Estrogen

A group of hormones primarily responsible for the development and regulation of the female reproductive system and secondary sexual characteristics.

Masculine-looking

Having physical traits that are traditionally associated with male gender norms and appearances.