A perfectly horizontal demand curve has
A) zero elasticity.
B) some positive finite elasticity.
C) negative elasticity.
D) elasticity equals infinity.

Question

Quizplus · Accepted Answer

A perfectly horizontal demand curve indicates that the quantity demanded is extremely sensitive to price changes, meaning that even a tiny change in price leads to an infinitely large change in the quantity demanded, hence the elasticity is considered to be infinite.

A Perfectly Horizontal Demand Curve Has