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A firm with a highly elastic demand for its products can easily pass increased costs on to consumers. will be unable to pass increased costs

A firm with a highly elastic demand for its products

can easily pass increased costs on to consumers.

will be unable to pass increased costs following unfavorable changes in the exchange rate without significantly lowering the quantity sold.

will be able to raise prices following unfavorable changes in the exchange rate without significantly lowering the quantity sold.

will sell about the same amount of product regardless of price.

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