If a small increase in the price of a good reduces quantity demanded to zero, demand is ________________ and the price elasticity of demand is equal to _______________.
A)perfectly inelastic; zero
B)perfectly elastic; infinity
C)unit elastic; one
D)perfectly elastic; zero

Question

Quizplus · Accepted Answer

Perfectly elastic demand means that a tiny increase in price leads to the quantity demanded dropping to zero, indicating an infinite price elasticity of demand.

If a Small Increase in the Price of a Good