If the Demand Curve for a Good Is a Horizontal

question 114

Multiple Choice

If the demand curve for a good is a horizontal line,then the good has

• A)zero income elasticity.
• B)price elasticity of demand equal to zero.
• C)a perfectly elastic demand.
• D)a price elasticity of demand that is likely to rise in the short run.
• E)a price elasticity of demand that is likely to fall in the short run.

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Definitions:

Economic Order Quantity

Economic Order Quantity (EOQ) is a formula used in inventory management to determine the optimal order size that minimizes the total cost of holding and ordering inventory.

Total Expenses

The sum of all costs and expenses associated with operating a business or executing a project.

Profit

The financial gain obtained when the revenue from selling goods or services exceeds the costs associated with production and distribution.

Linked Prosperity

A business philosophy that emphasizes creating economic value in a way that also produces value for society by addressing its challenges.