Suppose the percentage change in newspapers demanded for any price change is infinite. The absolute value of the elasticity of demand for newspapers is _____, and demand is _____.
A)0; perfectly elastic
B)0; perfectly inelastic
C)infinity; perfectly elastic
D)infinity; perfectly inelastic

Question

Quizplus · Accepted Answer

If the percentage change in quantity demanded is infinite, it means that demand responds infinitely to any change in price. Therefore, the absolute value of elasticity of demand is infinite, indicating a perfectly elastic demand.

Suppose the Percentage Change in Newspapers Demanded for Any Price