A Relatively Flat Demand Curve Indicates That

question 25

Multiple Choice

A relatively flat demand curve indicates that

• A)quantity demanded will adjust only slightly to a price change.
• B)quantity demanded will adjust significantly to a price change.
• C)quantity demanded will not adjust to a price change.
• D)the change in quantity demanded will exactly equal a change in price.

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Definitions:

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, reflecting their preferences for combinations of goods.

Utility

A measure of satisfaction or benefit that consumers receive from consuming goods and services.

Equilibrium Position

The state in which market supply and demand balance each other, resulting in stable prices and quantities.

Budget Line

A graphical representation showing all possible combinations of two goods that can be purchased with a given income.