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.
Answer: C
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The price elasticity of demand for a linear demand curve follows the pattern (moving from high prices to low prices)
a. elastic, unit elastic, inelastic. b. unit elastic, inelastic, elastic. c. inelastic, unit elastic, elastic. d. elastic, inelastic, unit elastic.
Per capita income growth is measured by
a. income growth – population growth b. income growth × population growth c. income growth/population growth d. income/population e. income growth + population growth
Under a system of laissez faire, output selection is determined by consumers' wants
a. True b. False Indicate whether the statement is true or false
Which one of the following is a final good or service?
A. Chemical pesticides used by a farmer to control the incidence of crop disease
B. Microcomputer chips for a new computer
C. A radio bought by General Motors for use in its new line of cars
D. A will drawn up by your personal attorney