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What Does a Horizontal Demand Curve Indicate About the Price

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What does a horizontal demand curve indicate about the price elasticity of demand?


Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a particular marketplace.

Profit-maximizing

Profit-maximizing is the process or goal of a business to operate in a way that achieves the highest possible profit.

Total Revenue

The total amount of money received by a company from its sales or services before any expenses are subtracted.

Profit-maximizing

A strategy or process that firms adopt to determine the price, output level, and input use that leads to the highest possible profit.

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