A Perfectly Elastic Demand Curve Implies That, Ceteris Paribus

question 14

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 even a bit above the market price, it will sell nothing at all
• C) the price a firm charges is irrelevant since 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:

Proficient

Describes having a high degree of competence or skill in a particular activity or field, often as a result of practice and learning.

Multiple Roles

Refers to the various roles an individual may play simultaneously in society, such as being a parent, employee, and student.

Marriage Rates

The number of marriages within a given population size or group per unit of time, typically expressed as marriages per year per 1,000 people.

Total Institutions

Places of residence and work where a large number of like-situated individuals, cut off from the wider society for an appreciable period of time, together lead an enclosed, formally administered life.