A demand curve that is horizontal indicates that the commodity
A)has few substitutes.
B)must be very cheap.
C)is a necessity.
D)has a large number of substitutes.

Question

Quizplus · Accepted Answer

A horizontal demand curve indicates perfectly elastic demand, meaning consumers will only buy at one price. This occurs when there are many substitutes, as consumers can easily switch if the price changes.

A Demand Curve That Is Horizontal Indicates That the Commodity