Suppose the demand curve for good X is horizontal.This shows that the demand for good X is
A)unit elastic.
B)inelastic.
C)perfectly elastic.
D)perfect inelastic.
E)elastic.

Question

Quizplus · Accepted Answer

If the demand curve for good X is horizontal, this means that any increase in price will cause consumers to switch immediately to a substitute good. Therefore, the demand for good X is perfectly elastic.

Suppose the Demand Curve for Good X Is Horizontal