If the Demand Curve for a Product Is Horizontal, Then

question 358

Multiple Choice

If the demand curve for a product is horizontal, then

• A) the demand for the product is perfectly inelastic.
• B) the demand for the product is perfectly elastic.
• C) only a certain amount of the product will be consumed regardless of price.
• D) the price elasticity of the product approaches zero.

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Definitions:

F Distribution

A probability distribution that arises in the analysis of variance tests, used to calculate and interpret the ratio of variances to determine statistical significance.

Null Hypothesis

A statement used in statistics that proposes there is no significant difference or effect and that any observed differences are due to chance.

Population Variance

Population Variance is a measure of the dispersion of all the values in a population from the mean, highlighting how spread out the population data points are.

Standard Deviation

Indicates how dispersed the values in a data set are, relative to the mean of the set.