Question : The price elasticity of demand for a perfectly elastic demand curve is:
Option 1: 0
Option 2: 1
Option 3: Greater than 1
Option 4: Infinite
Correct Answer: Infinite
Solution : The correct answer is (d) Infinite
The price elasticity of demand for a perfectly elastic demand curve is infinite. A perfectly elastic demand curve is a horizontal line, indicating that consumers are extremely responsive to changes in price. Even a small change in price will result in an infinitely large change in quantity demanded. Therefore, the price elasticity of demand is infinite in this case.
Question : When the price elasticity of demand is greater than 1, the demand is:
Option 1: Inelastic
Option 2: Unitary elastic
Option 3: Perfectly elastic
Option 4: Elastic
Question : If the price elasticity of demand for a good is greater than 1, the demand is:
Option 1: Elastic.
Option 2: Inelastic.
Option 3: Unit elastic.
Option 4: Perfectly inelastic.
Question : If the price elasticity of demand for a good is less than 1, the demand is:
Option 4: Perfectly elastic.
Question : Perfectly inelastic demand occurs when the price elasticity of demand is:
Option 4: Undefined
Question : When the price elasticity of demand is less than 1, the demand is:
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