For a horizontal demand curve,
A) slope is undefined,and price elasticity of demand is equal to 0.
B) slope is equal to 0,and price elasticity of demand is undefined.
C) slope and price elasticity of demand both are undefined.
D) slope and price elasticity of demand both are equal to 0.

Question

Quizplus · Accepted Answer

A horizontal demand curve means that no matter what the price is, the quantity demanded will remain the same. Therefore, the slope of the demand curve is 0, as there will be no change in quantity demanded with a change in price. However, the price elasticity of demand cannot be undefined, as it is calculated as the percentage change in quantity divided by the percentage change in price. Therefore, the price elasticity of demand for a horizontal demand curve is equal to 0, indicating perfectly inelastic demand.

For a Horizontal Demand Curve