A Perfectly Elastic Demand Curve Exhibits

question 206

Multiple Choice

A perfectly elastic demand curve exhibits

• A) zero responsiveness to changes in price.
• B) that quantity demanded will decrease to zero when there is a slight increase in the price level.
• C) a change in quantity demanded that is proportional to the change in price.
• D) a change in quantity demanded that is always twenty percent of the change in price.

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Definitions:

Single-blind Experiment

A type of experiment where the participants do not know which group (control or experimental) they belong to, but the researchers do.

Experimental Group

A group in a scientific study that is exposed to the variable being tested, in contrast to the control group.

Control Group

In an experiment, the group that is not exposed to the treatment, serving as a comparison point for assessing the effect of that treatment.

Independent Variable

In an experiment, it is the variable that is controlled or changed to test its effects on the dependent variable.