When the Demand Curve Is Perfectly Horizontal the Demand Curve

question 41

Multiple Choice

When the demand curve is perfectly horizontal the demand curve has

• A) zero elasticity.
• B) a large,but not infinite,elasticity.
• C) perfect elasticity.
• D) a small,but nonzero,elasticity.
• E) negative elasticity.

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Definitions:

Dissociation

The severance of the relationship between a partner and a partnership or between a member and a limited liability company.

Carrying On

Continuing to engage in a particular activity or conduct business.

Partnership Business

An authorized form of enterprise operated by two or more individuals who equally contribute to management and benefit from profits.

Ownership Interest

A stake or share in a company or property, representing a portion of the ownership.