The case of perfectly elastic demand is illustrated by a demand curve that is
A)vertical.
B)horizontal.
C)downward-sloping but relatively steep.
D)downward-sloping but relatively flat.

Question

Quizplus · Accepted Answer

Perfectly elastic demand refers to a situation when demand is so sensitive to price changes that a small change in price causes an infinite change in quantity demanded. This is illustrated by a demand curve that is horizontal, indicating that any increase or decrease in price would result in consumers completely shifting to a substitute product.

The Case of Perfectly Elastic Demand Is Illustrated by a Demand