Asked by Paige Gratton on May 10, 2024

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A perfectly elastic demand curve is

A) horizontal.
B) vertical.
C) upward sloping.
D) downward sloping.

Perfectly Elastic

A situation in a market where the quantity demanded or supplied responds infinitely or disproportionately to changes in price.

  • Differentiate between the characteristics of perfectly inelastic demand and perfectly elastic demand curves.
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Elizabeth ValadezMay 12, 2024
Final Answer :
A
Explanation :
A perfectly elastic demand curve means that the quantity demanded for a good or service is infinitely responsive to changes in price, resulting in a horizontal demand curve. This means that any increase in price will result in no demand for the good, and any decrease in price will result in an infinite increase in quantity demanded.