A perfectly elastic demand curve is shown as a
A) horizontal line.
B) vertical line.
C) positively sloped line.
D) negatively sloped line.

Question

Quizplus · Accepted Answer

A perfectly elastic demand curve means that even a small change in price will cause a large change in the quantity demanded, resulting in a horizontal line. This indicates that consumers are very sensitive to changes in price, and any increase in price will result in a significant decrease in demand, and any decrease in price will result in a significant increase in demand.

A Perfectly Elastic Demand Curve Is Shown as a