A firm facing a perfectly price elastic demand curve, ceteris paribus A. can sell all it produces only by lowering its price below the market price. B. can raise its price and not lose all its customers. C. will sell the same amount regardless if it raises or lowers the price it charges. D. will have zero quantity demanded if it raises its price above the market price
A firm facing a perfectly price elastic demand curve, ceteris paribus A. can sell all it produces only by lowering its price below the market price. B. can raise its price and not lose all its customers. C. will sell the same amount regardless if it raises or lowers the price it charges. D. will have zero quantity demanded if it raises its price above the market price
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A firm facing a perfectly
A. can sell all it produces only by lowering its price below the market price.
B. can raise its price and not lose all its customers.
C. will sell the same amount regardless if it raises or lowers the price it charges.
D. will have zero quantity demanded if it raises its price above the market price
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