When Demand Is Perfectly Elastic

question 78

Multiple Choice

When demand is perfectly elastic:

• A) the demand curve is perfectly vertical.
• B) the demand curve is perfectly horizontal.
• C) price elasticity is exactly −1.
• D) the response to a change in price is immediate.

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Taxes collected from employees and employers to fund the Medicare program, which provides health insurance for Americans aged 65 and older, and for some younger people with disability.

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