A rancher in Oklahoma decides to raise the price of her beef by 19% over the prevailing market price.If the demand for beef is perfectly elastic,this rancher's quantity demanded will:
A)fall to 0.
B)not change.
C)fall slightly.
D)increase slightly.

Question

Quizplus · Accepted Answer

With perfectly elastic demand, any increase in price will cause the quantity demanded to drop to zero. Therefore, if the rancher raises the price by 19%, the quantity demanded will fall to zero, resulting in no revenue for the rancher.

A Rancher in Oklahoma Decides to Raise the Price of Her