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.

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Definitions:

Vitiligo

A skin condition characterized by patches of skin losing their pigment, resulting in irregular white spots.

Miliaria

A skin condition, often referred to as heat rash, characterized by small, itchy bumps caused by blocked sweat ducts during hot and humid conditions.

Impetigo

A highly contagious bacterial skin infection, characterized by red sores, blistering, and a honey-colored crust.

Streptococcus

A genus of coccus (spherical) bacteria, many of which are responsible for diseases in humans and animals.