Suppose a graph is drawn to show a consumer's preferences for football tickets and basketball tickets. The quantity of football tickets is measured on the horizontal axis
If the price-consumption curve is horizontal when the price of football tickets changes, then A) football tickets are an inferior good.
B) the demand for football tickets is perfectly elastic.
C) the demand for football tickets is unit elastic.
D) the demand curve for football tickets will be horizontal.
C
You might also like to view...
Foreign exchange swaps involve:
A) selling one currency on the spot market and at the same time purchasing a forward B) trading goods rather than money to improve efficiency C) delaying payment of a spot contract until the currency is actually delivered D) none of the above
An asset is liquid if
A) it earns interest. B) it is backed by a government guarantee. C) it can be exchanged for other items of value without high transaction costs. D) All of the above are correct.