If the demand curve for corn is horizontal, the price elasticity of demand for corn _____.
A) is equal to 0
B) is equal to 1
C) is equal to inﬁnity
D) lies between 0 and 1

Question

Quizplus · Accepted Answer

A horizontal demand curve indicates that consumers are willing to purchase any quantity at a given price, which means the price elasticity of demand is infinite. This reflects a perfectly elastic demand situation.

If the Demand Curve for Corn Is Horizontal, the Price