If the value of the price elasticity of demand for a good is equal to infinity,the good has a ________ demand.
A) perfectly elastic
B) perfectly inelastic
C) unit elastic
D) relatively inelastic

Question

Quizplus · Accepted Answer

When the price elasticity of demand for a good is equal to infinity, it means that the quantity demanded changes infinitely in response to a change in price. This indicates a situation of perfect elasticity, where even a small change in price will cause an infinite change in the quantity demanded.

If the Value of the Price Elasticity of Demand for a Good