Horizontal and vertical demand curves
A)have constant elasticities.
B)are not possible in the real world.
C)have elasticities that change with price.
D)cannot have their elasticities computed using the point method.

Question

Quizplus · Accepted Answer

Horizontal and vertical demand curves have constant elasticities. A horizontal demand curve has an elasticity of infinity, meaning that any change in price will result in an infinite change in quantity demanded. A vertical demand curve has an elasticity of zero, meaning that a change in price will have no effect on the quantity demanded. Therefore, both curves have constant elasticities.

Horizontal and Vertical Demand Curves