Fill This Form To Receive Instant Help
Homework answers / question archive / Suppose the price elasticity of demand for a Czech novel translated into English is perfectly elastic
Suppose the price elasticity of demand for a Czech novel translated into English is perfectly elastic. Assume the initial price of the translated novel is $29.00 and the quantity demanded is 411 copies for year. If the price of the translated novel increases by $1.00, then what will be the quantity demanded (in copies per year)?
When demand is perfectly elastic, quantity demanded will drop to zero even for a small increase in price. In other words, the demand curve is horizontal when price is plotted on the vertical axis. Therefore, in this case, if the price of book is $1 higher, then quantity demanded is zero.