If consumer purchases of a good are highly sensitive to the price of the good, this is illustrated by a
A) demand curve that is relatively flat (more horizontal).
B) demand curve that is relatively steep (more vertical).
C) supply curve that is relatively flat (more horizontal).
D) supply curve that is relatively steep (more vertical).

Question

Quizplus · Accepted Answer

A relatively flat (more horizontal) demand curve indicates that a small change in price leads to a large change in quantity demanded, showing high price sensitivity or elasticity.

If Consumer Purchases of a Good Are Highly Sensitive to the Price