A horizontal demand curve for a good could arise because ...

[Mimi]

A horizontal demand curve for a good could arise because consumers
 
  A) are irrational.
  B) are not sensitive to price changes.
  C) view this good as identical to another good.
  D) have no equivalent substitutes for this good.

Question 2

If the price of orange juice rises 10, and as a result the quantity demanded falls by 10, then one can conclude that the demand for orange juice
 
  A) is perfectly elastic.
  B) is inelastic.
  C) has a unitary elasticity.
  D) has a constant elasticity.

[Pamela.irrgang@yahoo.com]

Answer to Question 1

C

Answer to Question 2

C