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masya89 [10]
3 years ago
9

A horizontal demand curve shows that demand for a good is _____.

Business
1 answer:
Evgen [1.6K]3 years ago
4 0
'Elastic' goods-is something in the market that is high in demand (in publicity-and that people buy it.
Ex beef is a great example of an elastic good. If you set the beef to a higher price than usual-customers will not buy it as expectedly as before.

'Inelastic' goods like gas- is a perfect example because if you set gas in high price-customers would not question it and pay for the price of gas anyways. (Due to it fulfilling customers' needs only.)


To answer your question, a horizontal demand curve is when you have a fixed demand in price (people are buying it has demand) and that supplies have ample quantity. (Supplies are high quantity)

Demand for a good in the horizontal demand curve is 'moderately elastic' because the supplies have quantity more than the fixed demand. It fits modernly elastic-customers are not buying as much due to high price and therefore supplies of quality increases. Just like the beef example.

The Answer is A

If the horizontal demand curve is 'inelastic' then it would be the opposite- demand would be higher than the quantity of supply.

Hope this helps :)
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Assume that while the budget balance in Conania changes from positive to negative, capital inflow in Conania also decreases. How
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Affirmative action focuses on hiring, training, promoting, and protecting class members where they are underrepresented in an or
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True

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If the book value per share is $40 and the market price is 52.50 per share calculate the required rate of return on the stock.
pav-90 [236]

Answer:

0.11 or 11%

Explanation:

The computation of the required rate of return is given below:

Required Rate of Return is

= Next Year Dividend ÷ Current Market Price + Growth Rate

= $3.15 ÷ $52.50 + 0.05

= 0.06 + 0.05

= 0.11 or 11%

working note

Given that

Current Market Price = $52.50

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Growth Rate = Return on Equity × Retained Earning Ratio

Now  

Return on Equity = EPS ÷ Book Value of Share

= $5 ÷ 40

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