A perfectly elastic demand:
A) means consumers are extremely sensitive to a change in price.
B) means quantity demanded is unchanged if the price changes by any amount.
C) is demonstrated by a vertical demand curve.
D) has a price elasticity of 1.

Question

Quizplus · Accepted Answer

A perfectly elastic demand implies that consumers will only buy at one price and any change in price will result in zero quantity demanded, indicating extreme sensitivity to price changes.

A Perfectly Elastic Demand