Question

if a supplier faces a perfectly horizontal demand curve and sets their price slightly higher than the demand curve itself, they can expect:
a. no change in their total revenues.
b. a complete loss of revenues.
c. a new demand curve.
d. everyone to begin buying their product.

Explanation:

A perfectly horizontal demand curve represents a perfectly competitive market, where the firm is a price taker. Consumers will only buy at the market price; any price above this means they will switch to identical, lower-priced competitors, leaving the firm with zero sales and thus no revenue.

Answer:

b. a complete loss of revenues.