A perfectly elastic demand implies that
A)buyers will not respond to any change in price.
B)any rise in price above that represented by the demand curve will result in a quantity demanded of zero.
C)quantity demanded and price change by the same percent as we move along the demand curve.
D)price will rise by an infinite amount when there is a change in quantity demanded.

Question

Quizplus · Accepted Answer

A perfectly elastic demand means that consumers are extremely sensitive to price changes, so any increase in price will cause the quantity demanded to drop to zero.

A Perfectly Elastic Demand Implies That