A horizontal demand curve is said to be:

a) completely inelastic.

b) infinitely elastic.

c) highly (but not infinitely) elastic.

d) highly (but not completely) inelastic.

The correct answer is B) infinitely elastic

A horizontal demand curve is said to be infinitely elastic or perfectly elastic demand curve. When there is infinitely elastic demand for goods and services, the decrease in prices will lead to an increase in the demand for goods and services by an infinite amount. Similarly, an increase in prices will lead to a decrease in the demand for goods and service to zero.

Explanation for incorrect answers

Option A is incorrect because when demand is inelastic, the demand curve is vertical.

Option C is incorrect because the horizontal demand curve signifies infinitely elastic.

Option D is incorrect as inelastic demand is represented by the vertical curve.