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

Name: A perfectly horizontal demand curve shows that the price elasticity of demand is A)zero. B)infinite. C)less than one. D)unity. 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, reflecting infinite price elasticity.

A Perfectly Horizontal Demand Curve Shows That the Price Elasticity