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

When a firm can sell as much as it wants at a constant price, it means that any increase in price would result in no sales, and any decrease in price would result in an infinite amount of sales. This type of demand is known as perfectly elastic demand.

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