A firm can sell as much as it wants at a constant price. Demand is thus
A)perfectly inelastic.
B)perfectly elastic.
C)relatively inelastic.
D)relatively elastic.

Question

Quizplus · Accepted Answer

Perfectly elastic demand means that consumers are willing to purchase any quantity of the product at a certain price, but no more if the price increases, which aligns with the scenario where a firm can sell as much as it wants at a constant price.

A Firm Can Sell as Much as It Wants at a Constant