Exhibit 5.8

-Refer to Exhibit 5.8,which shows a horizontal line.The curve could represent a _____
A)perfectly elastic demand or supply curve.
B)perfectly inelastic supply curve or a perfectly elastic demand curve.
C)perfectly elastic supply curve or a perfectly inelastic demand curve.
D)perfectly inelastic supply or demand curve.
E)perfectly inelastic supply curve or a unit-elastic demand curve.

Question

Exhibit 5.8
 
-Refer to Exhibit 5.8,which shows a horizontal line.The curve could represent a _____
A)perfectly elastic demand or supply curve. 
B)perfectly inelastic supply curve or a perfectly elastic demand curve. 
C)perfectly elastic supply curve or a perfectly inelastic demand curve. 
D)perfectly inelastic supply or demand curve. 
E)perfectly inelastic supply curve or a unit-elastic demand curve.

Quizplus · Accepted Answer

A horizontal line represents a perfectly elastic demand or supply curve, indicating that the quantity demanded or supplied can change infinitely at a particular price level.

Exhibit 5.8 -Refer to Exhibit 5.8,which Shows a Horizontal Line.The Curve Could