Figure 6-3
-In Figure 6-3(a), demand is
A)perfectly elastic.
B)perfectly inelastic.
C)unit elastic.
D)fixed at one particular quantity.

Question

Figure 6-3 
-In Figure 6-3(a), demand is
A)perfectly elastic. 
B)perfectly inelastic. 
C)unit elastic. 
D)fixed at one particular quantity.

Quizplus · Accepted Answer

Demand is perfectly elastic when a small change in price leads to a large change in quantity demanded. In Figure 6-3(a), a small change in price from P1 to P2 leads to a large change in quantity demanded from Q1 to Q2. Therefore, demand is perfectly elastic.

Figure 6-3 -In Figure 6-3(a), Demand Is