A Perfectly Elastic Demand Curve Implies That, Ceteris Paribus

question 192

Multiple Choice

A perfectly elastic demand curve implies that, ceteris paribus,

• A) a firm can sell more by lowering its price.
• B) if a firm raises its price above the market price, quantity demanded will equal zero.
• C) the price a firm charges is irrelevant, as it will sell the same amount regardless of the price charged.
• D) a firm can raise its price and not lose all its customers.

---

Definitions:

Hormones

Chemical messengers produced by the endocrine glands that regulate various functions within the body.

Endocrine Glands

glands of the endocrine system that secrete their products, hormones, directly into the blood rather than through a duct.

Chemical Messengers

Biological molecules that transmit signals from one cell to another, playing crucial roles in processes such as neurotransmission, hormonal activity, and immune responses.

Chromosomes

In the human cell, threadlike structures that come in 23 pairs, one member of each pair originating from each parent, and that contain DNA.