A perfectly horizontal demand curve shows that the price elasticity of demand is
A)zero.
B)unity.
C)less than one.
D)infinite.
E)not defined.

Name: A perfectly horizontal demand curve shows that the price elasticity of demand is A)zero. B)unity. C)less than one. D)infinite. E)not defined.
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Question

Quizplus · Accepted Answer

A perfectly horizontal demand curve indicates that consumers will only buy at one price, and any change in price will result in zero quantity demanded, which means the price elasticity of demand is infinite.

A Perfectly Horizontal Demand Curve Shows That the Price Elasticity