If the Demand Curve for a Good Is a Horizontal

question 43

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)infinite price elasticity of 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:

Market-Based Groupings

A method of organizing market segments or categories based on shared characteristics, preferences, or behaviors of the consumer groups.

Customer Segments

The division of a market into distinct groups of buyers based on different needs, characteristics, or behaviors.

Functional Groupings

the organization of objects, tasks, or responsibilities based on their purpose or similarity in function.

Staff Positions

Roles within an organization that support the line or primary activities, often involved in administrative, advisory, or strategic planning functions.