A horizontal demand curve is perfectly elastic because a change in price will not induce a change in quantity demanded
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
The consumption function shows how much
A) households plan to consume per year at each possible interest rate. B) real disposable income people will earn at each income tax bracket. C) households plan to consume per year at each level of real disposable income. D) households plan to consume per year at each level of savings.
A person holding dollar deposits during the devaluation of the dollar would
A) enjoy a monetary gain. B) see the foreign currency value of dollar assets increase by the amount of the exchange rate change. C) shift their wealth into domestic investments. D) suffer a monetary loss and see the foreign currency value of dollar assets decrease by the amount of the exchange rate change. E) see no change in their investments.
Why would a usury law result in banks making less credit available to low-income households?
What will be an ideal response?
If race-car driving is dangerous, why would any rational person choose to be a race-car driver?