A Consumer Is Willing and Able to Buy 1,000 Units

question 298

Multiple Choice

A consumer is willing and able to buy 1,000 units of a good at $10, 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) horizontal and is perfectly inelastic.
• B) horizontal and is perfectly elastic.
• C) vertical and is perfectly elastic.
• D) downward sloping from higher prices down to $10 and then horizontal.