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Price Elasticity of Supply on a Graph
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Price Elasticity of Supply on a Graph
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4. Elasticity / Price Elasticity of Supply on a Graph / Problem 1
Problem 1
How might a perfectly elastic supply curve affect a producer's pricing strategy?
A
Producers can increase prices without affecting sales.
B
Producers can set any price and maintain sales.
C
Producers can decrease prices to increase sales.
D
Producers cannot change the price without losing all sales.
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