If the demand curve for a product is horizontal, then
A) the demand for the good is perfectly inelastic.
B) consumers are not responsive to price changes.
C) its price elasticity of demand approaches infinity.
D) consumers may purchase all they want to at the established market price.

Question

Quizplus · Accepted Answer

A horizontal demand curve indicates that the product has a perfectly elastic demand, meaning that any change in price would result in an infinite change in quantity demanded.

If the Demand Curve for a Product Is Horizontal, Then