If the demand for a good is perfectly elastic, the price elasticity of demand is _______ and the demand curve is _______.
A) infinite; horizontal
B) infinite; vertical
C) zero; vertical
D) zero; horizontal

Question

Quizplus · Accepted Answer

The price elasticity of demand is infinite for a perfectly elastic demand, meaning consumers are extremely sensitive to price changes, and the demand curve is horizontal, indicating that any price change would lead to an infinite change in the quantity demanded.

If the Demand for a Good Is Perfectly Elastic, the Price