In the case of perfectly elastic demand, the demand curve is:

A. upward sloping.
B. downward sloping.
C. vertical.
D. horizontal.

Answer: D

Economics

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Suppose a change in the stock market makes people feel wealthier, increases consumption, and shifts the aggregate-demand curve right. The change in the stock market must have been

a) an increase in stock prices. b) a decrease in stock prices. c) the stock market has no effect on wealth and consumption. d) no change in stock prices.

Economics

In economics, the latin phrase "Ceteris Paribus" means:

(a) "The market is at equilibrium". (b) "Invisible hand". (c) "Profit maximisation is the goal". (d) "All else being equal".

Economics