A horizontal demand curve may be described as:
A)relatively price elastic.
B)perfectly price inelastic.
C)relatively price inelastic.
D)perfectly price elastic.
E)unit elastic.

Question

Quizplus · Accepted Answer

A horizontal demand curve means that a small change in price will result in a relatively large change in quantity demanded. This is the characteristic of a perfectly elastic demand, where consumers are extremely sensitive to price changes and will not buy the product if the price increases even slightly.

A Horizontal Demand Curve May Be Described As