If a firm loses all of its sales when it raises its price above the going market price, then:

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When a small change in price leads to an infinite change in quantity demanded, the demand curve is said to be perfectly elastic or infinitely elastic. In this case, the firm loses all of its sales when it raises its price, suggesting that customers are highly sensitive to price changes and will switch to competitors offering lower prices.

If a Firm Loses All of Its Sales When It