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

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.

Gillian Childers · Accepted Answer

Final Answer : B, Explanation :  If a firm can sell as much as it wants at a constant price, this means that any increase or decrease in price will have no effect on the quantity demanded. Therefore, the demand is perfectly elastic.

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.

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