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A Perfectly Elastic Demand Curve Implies That, Ceteris Paribus

Question 27

Multiple Choice

A perfectly elastic demand curve implies that, ceteris paribus:


A) a firm can sell more by lowering its price
B) if a firm raises its price even a bit above the market price, it will sell nothing at all
C) the price a firm charges is irrelevant since it will sell the same amount regardless of the price charged
D) a firm can raise its price and not lose all its customers

Correct Answer:

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