If the demand curve for a product is horizontal, then
A) the demand for the product is perfectly inelastic.
B) the demand for the product is perfectly elastic.
C) only a certain amount of the product will be consumed regardless of price.
D) the price elasticity of the product approaches zero.
B
You might also like to view...
A speculator becomes the floating-rate payer in an interest-rate swap. She hopes that
A) long rates rise. B) long rates fall. C) short rates rise. D) short rates fall.
Suppose an economics professor receives a $10,000 royalty check from a foreign publishing company and deposits the amount in a local bank. This transaction would be recorded as:
a. a $10,000 credit entry in the domestic services account. b. a $20,000 debit entry in the domestic capital account. c. a $20,000 debit entry in the domestic capital account. d. a $10,000 credit entry in the domestic capital account. e. a $10,000 debit entry in the domestic services account.