A horizontal demand curve for a good could arise because consumers
A) are irrational.
B) are not sensitive to price changes.
C) view this good as identical to another good.
D) have no equivalent substitutes for this good.

Question

Quizplus · Accepted Answer

A horizontal demand curve indicates perfect elasticity, meaning consumers view the good as identical to another, so any price increase would lead them to switch to the substitute.

A Horizontal Demand Curve for a Good Could Arise Because