Suppose the demand curve for good X is horizontal.The demand for good X is
A)unit elastic.
B)inelastic.
C)perfectly elastic.
D)perfectly inelastic.
E)elastic.

Name: Suppose the demand curve for good X is horizontal.The demand for good X is A)unit elastic. B)inelastic. C)perfectly elastic. D)perfectly inelastic. E)elastic.
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Question

Quizplus · Accepted Answer

A horizontal demand curve means that any increase in price will lead to a complete loss of demand, thus the demand is perfectly elastic.

Suppose the Demand Curve for Good X Is Horizontal