The price elasticity of a horizontal demand curve is always
A)infinitely large.
B)zero.
C)one.
D)increasing as price increases.

Question

Quizplus · Accepted Answer

A horizontal demand curve represents a situation where the quantity demanded changes by a very large amount in response to a very small change in price, which is defined as perfectly elastic demand. This means the price elasticity of demand is infinitely large.

The Price Elasticity of a Horizontal Demand Curve Is Always