Statement I: A perfectly elastic demand curve has the same elasticity as a perfectly inelastic demand curve.
Statement II: When elasticity is .2,a 1% decline in price will raise quantity demanded by .2%.

A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.

Perfectly Elastic

A situation in demand or supply where the quantity demanded or supplied changes infinitely in response to any change in price.

Perfectly Inelastic

Describes a market scenario where the demand or supply for a product remains unchanged even when the price changes.

Elasticity

A measure of how much the quantity demanded or supplied of a good or service changes in response to a change in its price.