The shape of a perfectly elastic demand curve is
A)horizontal,Ed = infinity.
B)horizontal,Ed = 0.
C)horizontal,Ed = -1.
D)vertical,Ed = 0.

Question

Quizplus · Accepted Answer

A perfectly elastic demand curve means that consumers will stop buying the product if there is even a slight increase in price. As a result, for any quantity demanded, the price elasticity of demand approaches infinity, and the demand curve is perfectly horizontal.

The Shape of a Perfectly Elastic Demand Curve Is