A firm with a highly elastic demand for its products
A) will be unable to pass increased costs following unfavorable changes in the exchange rate without significantly lowering the quantity sold.
B) will be able to raise prices following unfavorable changes in the exchange rate without significantly lowering the quantity sold.
C) can easily pass increased costs on to consumers.
D) will sell about the same amount of product regardless of price.
Correct Answer:
Verified
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