Suppose demand can be written as $\mathrm { P } = 5$ .The elasticity of demand is
A)increasing as price rises.
B)decreasing as price rises.
C)constant regardless of prices and perfectly elastic.
D)constant regardless of prices and unit elastic.

Question

Quizplus · Accepted Answer

When demand is perfectly elastic, a small change in price leads to an infinite change in quantity demanded. Therefore, the elasticity of demand is constant (equal to infinity) regardless of price.

Suppose Demand Can Be Written As P=5\mathrm { P } = 5P=5

Suppose Demand Can Be Written As $\mathrm { P } = 5$