If Demand Is Perfectly Elastic, the Price Elasticity of Demand

question 182

Multiple Choice

If demand is perfectly elastic, the price elasticity of demand is equal to

• A) 1.
• B) 0.
• C) infinity.
• D) a positive number between 0 and infinity.

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Definitions:

Promisor

The individual or party in a contract who makes a promise to perform an act or service.

Promisee

The party in a contract to whom a promise is made by another party (the promisor), and who stands to benefit from the fulfillment of that promise.

State Common Law

The body of law developed through court decisions and precedent, as opposed to laws enacted by a legislative body, within a particular state.

Article 2

A portion of the Uniform Commercial Code that deals specifically with the sale of goods.