A perfectly elastic demand curve has a price elasticity
A)equal to zero.
B)that varies.
C)equal to 1.
D)less than 1.
E)of infinity.

Name: A perfectly elastic demand curve has a price elasticity A)equal to zero. B)that varies. C)equal to 1. D)less than 1. E)of infinity.
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Question

Quizplus · Accepted Answer

A perfectly elastic demand curve means that any increase in price will cause an infinite decrease in quantity demanded. Therefore, the price elasticity of demand in this case would be infinite.

A Perfectly Elastic Demand Curve Has a Price Elasticity