A perfectly elastic demand is one in which:
A)the demand curve is perfectly vertical.
B)the demand curve is perfectly horizontal.
C)measured elasticity is exactly 1.
D)the response to a change in price is immediate.

Question

Quizplus · Accepted Answer

A perfectly elastic demand means that even a small change in price will lead to a significant change in quantity demanded. This can only happen if the demand curve is perfectly horizontal, meaning that consumers are willing to buy an infinite amount of a product at a certain price but none at a slightly higher price.

A Perfectly Elastic Demand Is One in Which