If the Demand Curve for a Product Is Horizontal, Then

question 210

Multiple Choice

If the demand curve for a product is horizontal, then the elasticity of demand is:

• A)​equal to zero.
• B)​equal to one.
• C)​greater than one, but less than infinity.
• D)​equal to infinity.

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Definitions:

Bananas

A tropical fruit with soft, creamy flesh, protected by a yellow or green peel, widely consumed worldwide and rich in nutrients.

Utility Function

A mathematical model representing consumer preferences, used to explain how consumers allocate their spending.

Budget Constraint

Represents the combination of goods and services that a consumer can purchase given their income and the prices of those goods and services.

Income

The monetary payment received for goods or services, or from investments, typically measured per period like annually or monthly.