The elasticity of demand for the demand curve of a firm under perfect competition is
A)1
B)0
C)-1
D)?

Name: The elasticity of demand for the demand curve of a firm under perfect competition is A)1 B)0 C)-1 D)?
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Question

Quizplus · Accepted Answer

In perfect competition, the demand curve for an individual firm is perfectly elastic, meaning it is horizontal. Therefore, the elasticity of demand is undefined or infinite, not a specific numerical value like 1, 0, or -1.

The Elasticity of Demand for the Demand Curve of a Firm