A Horizontal Demand Curve Indicates

question 50

Multiple Choice

A horizontal demand curve indicates:

• A) a perfectly inelastic demand.
• B) quantity demanded will drop to zero if the price increases by any amount.
• C) price elasticity is 1.
• D) price is not important in this market.

---

Definitions:

Contribution

The effort or impact an individual or group provides towards achieving the objectives of an organization.

Equity Theory

A theory of motivation that suggests employees are motivated to achieve a balance between their inputs and outputs in the workplace, comparing themselves to others in similar situations.

Psychological Contract

The unwritten, informal commitments and expectations between an employer and an employee, beyond the formal employment contract.

Procedural Justice

The fairness of the processes that lead to outcomes or decisions, particularly in the context of legal or organizational settings.