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

Question

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

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 means the elasticity of demand is infinite. This reflects a perfectly elastic demand situation.

If the Demand Curve for a Product Is Horizontal, Then