A horizontal demand curve indicates that:
A) quantity demanded will rise if the price increases by any amount.
B) quantity demanded will drop to zero if the price increases by any amount.
C) quantity demanded will remain unchanged no matter what happens to the price.
D) price is not important in this market.

Question

Quizplus · Accepted Answer

A horizontal demand curve indicates perfectly elastic demand, meaning that any increase in price will cause the quantity demanded to drop to zero.

A Horizontal Demand Curve Indicates That