A perfectly elastic demand curve has a price elasticity of demand coefficient of:
A) zero.
B) 1.
C) greater than 1, but less than infinity.
D) less than 1, but greater than zero.
E) infinity.

Question

Quizplus · Accepted Answer

A perfectly elastic demand curve means that any increase in price will result in an infinite decrease in quantity demanded, so the price elasticity of demand coefficient would be infinity.

A Perfectly Elastic Demand Curve Has a Price Elasticity of Demand