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The price elasticity along a perfectly horizontal demand curve:

A. is zero.
B. is infinite.
C. changes at every point.
D. is equal to 1.
E. is less than 1.

User Shiffon
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Final answer:

The price elasticity along a perfectly horizontal demand curve is infinite, signaling that consumers are willing to buy any quantity at a specific price, and any price change results in an infinite response in quantity demanded.

Step-by-step explanation:

The student's question relates to the concept of price elasticity of demand, which is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price. When a demand curve is perfectly horizontal, it represents a case of perfectly elastic demand. This means that consumers are willing to buy an infinite quantity at a specific price (P), but any deviation from this price causes the quantity demanded to drop to zero or surge to infinity. Therefore, the price elasticity along a perfectly horizontal demand curve is infinite, because the quantity demanded is extremely responsive to even the smallest price change.

User TinyGrasshopper
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