A Demand Curve That Is Horizontal Indicates That the Commodity

question 285

Multiple Choice

A demand curve that is horizontal indicates that the commodity

• A)has few substitutes.
• B)must be very cheap.
• C)is a necessity.
• D)has a large number of substitutes.

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Definitions:

Excludable

Excludable describes a good or service that one can prevent others from using unless they pay for it, characterized by the ability to exclude non-payers.

Nonrival

A characteristic of a good whereby one person's consumption does not reduce availability to others, often associated with public goods.

Nonrival

A characteristic of a good whereby one individual's consumption of the good does not reduce its availability for consumption by others.

Netflix

An American streaming service and production company that offers a wide variety of television shows, movies, anime, documentaries, and more on thousands of internet-connected devices.