A perfectly horizontal demand curve shows that the own- price elasticity of demand is
A) unity.
B) less than one.
C) zero.
D) not defined.
E) infinite.

Question

Quizplus · Accepted Answer

A perfectly horizontal demand curve indicates that consumers will buy any quantity at a specific price, but none at any other price, which means the demand is perfectly elastic, or has infinite elasticity.

A Perfectly Horizontal Demand Curve Shows That the Own- Price