[Solved] A demand curve, which is parallel to the horizontal axis, showing quantity, has the price elasticity equal to -

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Q.	A demand curve, which is parallel to the horizontal axis, showing quantity, has the price elasticity equal to -
A.	Zero
B.	One
C.	Less than one
D.	Infinity
Answer» D. Infinity
Explanation: Price elasticity of demand measures consumer response to price changes. If consumers are relatively sensitive to price changes, demand is elastic: if they are relatively unresponsive to price changes, demand is inelastic. Perfectly inelastic demand is graphed as a line parallel to the vertical axis; perfectly elastic demand is shown by a line above and parallel to the horizontal axis. When the demand for a commodity is perfectly elastic, the quantity of demand keeps changing with the price. So the coefficient of price elasticity of demand is infinity.

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