If the own price elasticity of demand is infinite in absolute value,then:
A) demand is perfectly elastic.
B) the demand curve is vertical.
C) consumers do not respond at all to changes in price.
D) the demand curve is vertical and consumers do not respond at all to changes in price.

Question

Quizplus · Accepted Answer

When the own price elasticity of demand is infinite in absolute value, it means that a small change in price leads to an infinitely large change in quantity demanded. This is only possible when the demand curve is perfectly elastic, which means consumers are very sensitive to changes in price and will stop buying the product altogether if the price increases even slightly.

If the Own Price Elasticity of Demand Is Infinite in Absolute