A consumer is willing and able to buy 100 units of a good at $100, but the consumer's quantity demanded falls to zero if the price rises even a fraction of a cent. The consumer's demand curve is
A. vertical and is perfectly elastic.
B. horizontal and is perfectly elastic.
C. horizontal and is perfectly inelastic.
D. downward sloping from higher prices down to $10 and then horizontal.
Answer: B
Economics
You might also like to view...
Which of the following results in a movement along the supply curve of spinach but does not shift the supply curve of spinach?
A) disastrous weather that destroys half of this year's spinach crop B) a rise in the price of spinach C) an increase in wages for workers in spinach fields D) great weather that produces a bumper spinach crop this year
Economics
Which auctioned good is more likely to have a common value across potential bidders?
A) a truckload of baseball memorabilia B) a Monet painting C) a customized car D) timber
Economics