If the demand curve is perfectly elastic, the elasticity coefficient is ____ and the curve is ____.
A)zero, vertical
B)infinity, horizontal
C)horizontal
D)infinity, vertical
E)less than 1, vertical

Question

Quizplus · Accepted Answer

When the demand curve is perfectly elastic, any increase in price will cause a consumer to stop buying the product altogether, resulting in an infinitely large change in quantity demanded. Therefore, the elasticity coefficient is infinite, and the demand curve is horizontal.

If the Demand Curve Is Perfectly Elastic, the Elasticity Coefficient