A perfectly elastic demand curve for a firm
A)is represented by a vertical line.
B)means that with every unit price increase there will be a unit decrease in demand.
C)is formulated by P × Q = a constant, for all prices and quantities.
D)indicates that any increase in price will eliminate all purchases of its product.

Question

Quizplus · Accepted Answer

A perfectly elastic demand curve is horizontal, indicating that any price increase will cause the quantity demanded to drop to zero, as consumers will switch to substitutes.

A Perfectly Elastic Demand Curve for a Firm