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

Question

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

Quizplus · Accepted Answer

A perfectly elastic demand curve means that a small change in price results in an infinite change in quantity demanded. This means the elasticity coefficient is infinity and the demand curve is horizontal.

If the Demand Curve Is Perfectly Elastic, the Elasticity Coefficient