If a Supplier Faces a Perfectly Horizontal Demand Curve and Sets

question 33

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.

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Definitions:

Stimulation

The activity of encouraging something to grow, develop, or become active, often related to sensory or intellectual input.

Memory Task

A psychological test or exercise designed to assess or enhance an individual's ability to remember information.

Probability Level

The likelihood or chance of an event occurring, often expressed as a percentage or a fraction.

Statistically Significant

Statistically significant results are those that are unlikely to have occurred by chance alone, indicating a high probability that observed differences or relationships are real.