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For a horizontal demand curve, what is the slope and the price elasticity of demand?

1) The slope is undefined and the price elasticity of demand is 0
2) The slope is positive and the price elasticity of demand is 0
3) The slope is negative and the price elasticity of demand is undefined
4) The slope is positive and the price elasticity of demand is undefined

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Final answer:

For a horizontal demand curve, the slope is 0 and the price elasticity of demand is undefined.

Step-by-step explanation:

The slope of a demand curve represents the rate of change in quantity demanded relative to the change in price. For a horizontal demand curve, the slope is 0 because the quantity demanded remains constant regardless of price changes. The price elasticity of demand measures the responsiveness of quantity demanded to changes in price. For a horizontal demand curve, the price elasticity of demand is undefined because the percentage change in quantity demanded is infinite when the percentage change in price is 0.

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