A Horizontal Demand Curve for a Good Could Arise Because

question 86

Multiple Choice

A horizontal demand curve for a good could arise because consumers

• A) are irrational.
• B) are not sensitive to price changes.
• C) view this good as identical to another good.
• D) have no equivalent substitutes for this good.

---

Definitions:

Long-Term Investments

Assets that a company intends to hold for more than one fiscal year, including stocks, bonds, real estate, and other securities.

Preferred Shares

A class of ownership in a corporation that provides a higher claim on assets and earnings than common shares; dividends must be paid on these shares before any can be distributed to common shareholders.

Dividend Income

Earnings distributed to shareholders from the profits achieved by a company, often calculated per share and paid out in cash or additional shares.