If demand is perfectly elastic, the price elasticity of demand is equal to
A) 1.
B) 0.
C) infinity.
D) a positive number between 0 and infinity.

Question

Quizplus · Accepted Answer

If demand is perfectly elastic, even a slight increase in price will result in a complete loss of demand, causing the elasticity of demand to become infinitely high. Therefore, the correct answer is C, infinity.

If Demand Is Perfectly Elastic, the Price Elasticity of Demand