The demand for a good is perfectly elastic when the price elasticity of demand is
A)equal to infinity.
B)between infinity and 1.
C)equal to 1.
D)between 1 and zero.
E)equal to zero.

Question

Quizplus · Accepted Answer

A perfectly elastic demand means that any change in price will result in an infinite change in quantity demanded, which means price elasticity of demand is equal to infinity.

The Demand for a Good Is Perfectly Elastic When the Price