When price elasticity is infinite, the demand curve will be ________.
A
vertical
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B
horizontal
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C
downward sloping
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D
upward sloping
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Solution
The correct option is A horizontal solution:
quantity demanded drops to zero for any increase in the price.refers to the condition of A perfectly (or infinitely) elastic demand curve refers to the extreme case in which the quantity demanded increases by an infinite amount in response to any decrease in price at all.