What does a perfectly elastic demand imply
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 no output demanded.
C)Price and quantity demanded respond proportionally.
D)Price will rise by an infinite amount when there is a change in quantity demanded.

Question

Quizplus · Accepted Answer

A perfectly elastic demand implies that consumers will only purchase at a specific price, and any increase in price will cause the quantity demanded to drop to zero.

What Does a Perfectly Elastic Demand Imply