Question

Suppose the demand for a product is perfectly elastic. At a price of $20, 10 units of a product are sold. If the price is increased to $40, then one would expect sales __________. a) to remain at 10 b) to fall below 5 c) to equal 5 d) to fall to zero

Answer 1

B

Step-by-step explanation:

$20, 10 units are sold.

$40, no one wants to buy it as much but, won't go down completely so it would be B.

Hope this helps!