If the demand curve for a product is horizontal, then what is the elasticity of demand?
A) equal to zero
B) equal to one
C) greater than one, but less than infinity
D) equal to infinity

Question

Quizplus · Accepted Answer

A horizontal demand curve indicates that the quantity demanded changes by a large amount in response to a very small change in price, which is characteristic of perfect elasticity, or an elasticity of demand equal to infinity.

If the Demand Curve for a Product Is Horizontal, Then