What does a demand curve that is horizontal indicate about a commodity?
A)It has few substitutes.
B)It must be very cheap.
C)It is a necessity.
D)It has a large number of substitutes.

Question

Quizplus · Accepted Answer

A horizontal demand curve indicates that the commodity has a large number of substitutes available, meaning that consumers can easily switch to other similar products if the price of the commodity increases. As a result, the demand for the commodity is very elastic, and small changes in price can significantly affect the quantity demanded.

What Does a Demand Curve That Is Horizontal Indicate About