What is the shape of a perfectly elastic demand curve? Explain its significance for a seller.
What will be an ideal response?
The perfectly elastic demand curve is horizontal and parallel to the X axis. A slight increase in the price will drop the quantity demanded to zero. It means that the seller will lose all of her customers if she raises the price even slightly.
Economics
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Full employment, which is always expected to occur, consists of the frictionally and cyclically unemployed
a. True b. False Indicate whether the statement is true or false
Economics
Monopolistic competitors and perfect competitors are alike in: a. facing horizontal demand curves
b. earning zero economic profit in the short run. c. earning zero economic profit in the long run. d. relying on advertising to attract buyers to their products.
Economics