A demand curve is described as perfectly elastic if
A)any quantity can be sold at a given price.
B)the same quantity is sold regardless of price.
C)neither price nor quantity demanded ever change.
D)only price can change.

Question

Quizplus · Accepted Answer

A demand curve is described as perfectly elastic if any quantity can be sold at a given price. This means that when the price increases even a little, the quantity demanded drops to zero, and when the price decreases even a little, the quantity demanded increases infinitely to the point where the market becomes saturated. Therefore, the demand curve is perfectly elastic because the price sensitivity of demand is infinite.

A Demand Curve Is Described as Perfectly Elastic If