-The demand curve shown in the figure above reflects demand that is
A) perfectly elastic.
B) perfectly inelastic.
C) unit elastic.
D) elastic but not perfectly elastic.
E) inelastic but not perfectly inelastic.

Question

-The demand curve shown in the figure above reflects demand that is
A) perfectly elastic. 
B) perfectly inelastic. 
C) unit elastic. 
D) elastic but not perfectly elastic. 
E) inelastic but not perfectly inelastic.

Quizplus · Accepted Answer

The demand curve is perfectly elastic because it is a horizontal line, which means that the quantity demanded does not change at all in response to changes in price.

-The Demand Curve Shown in the Figure Above Reflects Demand