A horizontal demand curve is
A)unit elastic.
B)relatively inelastic.
C)relatively elastic.
D)perfectly inelastic.
E)perfectly elastic.

Question

Quizplus · Accepted Answer

A horizontal demand curve indicates perfectly elastic demand, meaning that consumers are extremely sensitive to price changes and will not purchase the product if the price is even slightly higher than their willingness to pay. As a result, any increase in price would cause quantity demanded to drop to zero, making it perfectly elastic.

A Horizontal Demand Curve Is