If a Supplier Faces a Perfectly Horizontal Demand Curve and Sets

question 268

Multiple Choice

If a supplier faces a perfectly horizontal demand curve and sets his price slightly higher than the demand curve itself, he can expect:

• A) no change in his total revenues.
• B) everyone to begin buying his product.
• C) a complete loss of revenues.
• D) a new demand curve.
• E) a relative increase in income.

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Definitions:

Situational Forces

External factors or circumstances that influence an individual's behavior and decision-making in a given context or situation.

Dispositional Factors

Internal attributes or traits that influence an individual's behavior and actions.

Schemas

Cognitive frameworks or structures that help individuals organize and interpret information based on their experiences.

Stereotype Threat

The risk of confirming negative stereotypes about an individual's racial, ethnic, gender, or cultural group.