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If a Firm Facing a Perfectly Elastic Demand Curve Raises

Question 39

Multiple Choice

If a firm facing a perfectly elastic demand curve raises its price,


A) it will still sell exactly the same amount of output as it did at the lower price
B) it will lose some, but not all, of its sales
C) its sales will decrease to zero
D) its sales will increase
E) it is impossible to predict what will happen to its sales

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