A price elasticity of infinity corresponds to a demand curve that is:
A)Horizontal
B)Downward sloping with a slope always equal to 1.
C)Vertical
D)Either vertical or horizontal.

Question

Quizplus · Accepted Answer

A price elasticity of infinity indicates perfectly elastic demand, which corresponds to a horizontal demand curve. This means that consumers will only buy at one price, and any change in price will result in zero quantity demanded.

A Price Elasticity of Infinity Corresponds to a Demand Curve