Firms That Are Price Searchers

question 42

Multiple Choice

Firms that are price searchers

• A) will eventually find and charge the highest price at which consumers will purchase any units.
• B) face inelastic demand curves for their products.
• C) do not confront rival sellers like price takers do.
• D) face a downward-sloping demand curve.

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Definitions:

Supply

The total amount of a specific good or service that is available to consumers at a given price level and time.

Elastic

Describing a situation where the demand or supply for a good or service is sensitive to changes in price.

Supply of Cars

The total number of cars that manufacturers are willing and able to sell at a given price level in a given period.

Time Interval

A specific duration of time between two points or events.