tb mc qu. 06 - 43 a firm can sell as... a firm can sell as much as it wants at a constant price. demand is…
tb mc qu. 06 - 43 a firm can sell as... a firm can sell as much as it wants at a constant price. demand is thus multiple choice relatively elastic. perfectly inelastic. perfectly elastic. relatively inelastic.
Answer
Brief Explanations:
When a firm can sell as much as it wants at a constant price, the demand curve is horizontal. In such a case, the price - elasticity of demand is infinite, which means demand is perfectly elastic. A small change in price would lead to an infinitely large change in quantity demanded.
Answer:
C. perfectly elastic