In a Perfectly Competitive Market, the Price Elasticity of Demand

question 425

Multiple Choice

In a perfectly competitive market, the price elasticity of demand for the market demand is ________ and the price elasticity of demand for an individual firm's demand is ________.

• A) infinite; infinite
• B) less than infinite; infinite
• C) infinite; less than infinite
• D) less than infinite; less than infinite

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Definitions:

Interconnectedness

The state or condition of being interconnected, indicating how components or elements within a system are related or connected to one another.

Changes Constantly

A characteristic of something that is continually undergoing modifications or alterations.

Household Income

The total amount of money earned by the members of a household, encompassing all sources of income.

Individual Journal Notes

Personal records or annotations made by individuals in journals for various purposes, including reflection, study, or record-keeping.