When the demand curve is perfectly horizontal the demand curve has
A) zero elasticity.
B) a large,but not infinite,elasticity.
C) perfect elasticity.
D) a small,but nonzero,elasticity.
E) negative elasticity.

Question

Quizplus · Accepted Answer

When the demand curve is perfectly horizontal, it means that even a small change in price will cause an infinite change in quantity demanded. This indicates that the demand is perfectly elastic, meaning that consumers are extremely sensitive to changes in price and will only buy the product at a certain price, hence the term "perfect" elasticity.

When the Demand Curve Is Perfectly Horizontal the Demand Curve