What is the price elasticity of demand at any point on a perfectly elastic demand curve?

Given the information in the table above, if the world equilibrium price of widgets were 40 cloths, then

A) both countries could benefit from trade with each other. B) neither country could benefit from trade with each other. C) each country will want to export the good in which it enjoys comparative advantage. D) neither country will want to export the good in which it enjoys comparative advantage. E) both countries will want to specialize in cloth.

Which of the following statements is incorrect?

a. Budget deficits raise the national debt. b. The concepts of deficit and debt are closely related. c. Getting rid of the deficit eliminates accumulated debt. d. Budget surpluses lower the national debt.