Asked by Salvador Ramirez on Jul 30, 2024
Verified
Perfectly elastic demand has an elasticity value of zero.
Perfectly Elastic Demand
A market situation in which demand for a product is infinitely sensitive to changes in price.
- Understand the theory and consequences of perfectly inelastic and perfectly elastic demand.
Verified Answer
ZK
Zybrea KnightAug 05, 2024
Final Answer :
False
Explanation :
Perfectly elastic demand has an elasticity value of infinity, indicating that consumers would buy an infinite amount of a product at a specific price, but none at all if the price increases.
Learning Objectives
- Understand the theory and consequences of perfectly inelastic and perfectly elastic demand.
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