If the price elasticity of demand is infinite, demand is
A) upward sloping.
B) inelastic.
C) elastic.
D) perfectly elastic.

Question

Quizplus · Accepted Answer

If the price elasticity of demand is infinite, it means that a small change in price leads to an infinitely large change in quantity demanded. This only occurs for goods with perfect substitutes, which means that consumers will switch to an identical product if there is any change in price. Therefore, demand is perfectly elastic.

If the Price Elasticity of Demand Is Infinite, Demand Is