If demand for a given good is perfectly elastic, it follows that
A)as price changes, quantity demanded does not change.
B)as price changes, quantity demanded changes by a larger percentage.
C)as price changes only a small percentage, quantity demanded falls to zero.
D)as income changes only a small percentage, quantity demanded changes by a very large percentage.
E)none of the above

Question

Quizplus · Accepted Answer

In a perfectly elastic demand, any small change in price leads to an infinite change in quantity demanded, meaning quantity demanded falls to zero if the price increases even slightly.

If Demand for a Given Good Is Perfectly Elastic, It