A Perfectly Horizontal Demand Curve Shows That the Own- Price

question 54

Multiple Choice

A perfectly horizontal demand curve shows that the own- price elasticity of demand is

• A) unity.
• B) less than one.
• C) zero.
• D) not defined.
• E) infinite.

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Definitions:

Compliance

The act of conforming to a request or demand from others, often used in a psychological context to describe when a person changes their behavior in response to an explicit or implicit request.

Obedience

The act of following orders or directions from those in authority.

Stereotype

A commonly accepted yet simplified and rigid perception or conception of a specific kind of individual or object.

Prejudice

Preconceived opinion or bias, often negative, towards someone or something based on stereotypes rather than relevant facts.