A Perfectly Elastic Demand Curve Has a Price Elasticity

question 86

Multiple Choice

A perfectly elastic demand curve has a price elasticity

• A)equal to zero.
• B)that varies.
• C)equal to 1.
• D)less than 1.
• E)of infinity.

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Definitions:

Percent Equivalent

A way to express a number as a fraction of 100, commonly known as a percentage.

Nearest 0.01%

Rounding to the closest one-hundredth of a percent, often used in financial calculations to ensure precision.

Terminating Decimal

A decimal fraction that comes to an end or has a finite number of digits after the decimal point.

Five-Figure Accuracy

A level of precision where a numerical value is rounded to the nearest ten-thousandth place, representing the first five significant digits.