If consumers won't pay more than $1.50 for a pack of gum and at $1.50 they will buy an almost infinite amount, price elasticity of demand at $1.50 is:
A) inelastic.
B) elastic.
C) perfectly elastic.
D) perfectly inelastic.

Question

Quizplus · Accepted Answer

Price elasticity of demand is perfectly elastic when consumers are willing to buy an infinite amount at a specific price but none at any higher price.

If Consumers Won't Pay More Than $1