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:

Residential Property

Property designated for living or dwelling for individuals or families.

Regressive Tax

A tax system where the tax rate decreases as the taxpayer’s income increases, placing a higher relative burden on those with lower incomes.

Tax Schedules

Detailed charts or tables used by taxpayers to determine their tax obligations based on their income levels.

Economy

A system of production, distribution, and consumption of goods and services within a particular geographical region.