If Demand Is Perfectly Elastic, the Absolute Value of the Price

question 271

Multiple Choice

If demand is perfectly elastic, the absolute value of the price elasticity coefficient is

• A) infinity.
• B) zero.
• C) more than one.
• D) equal to the absolute value of the slope of the demand curve.

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Definitions:

Abstract Logic

A form of reasoning that does not rely on empirical evidence and utilizes concepts and principles that are not tied to specific examples or experiences.

Unwarranted Assumptions

These are beliefs taken for granted without sufficient evidence or rationale, often influencing reasoning and decision-making.

Chunking Memory

A process by which individual pieces of information are grouped together into larger units, making them easier to remember.

Working Memory

A cognitive system responsible for temporarily holding and manipulating information necessary for complex tasks such as learning, reasoning, and comprehension.