If the demand curve for a good is a horizontal line, then the good has
A)zero income elasticity.
B)price elasticity of demand equal to zero.
C)infinite price elasticity of demand.
D)a price elasticity of demand that is likely to rise in the short run.
E)a price elasticity of demand that is likely to fall in the short run.

Question

Quizplus · Accepted Answer

A horizontal demand curve indicates that the good has infinite price elasticity of demand, meaning consumers will only buy at one price and any change in price will result in zero quantity demanded.

If the Demand Curve for a Good Is a Horizontal