Perfectly elastic demand occurs when:
A) consumers are extremely sensitive to a change in price.
B) the quantity demanded is unchanged when price changes by any amount.
C) consumers are slow to alter their demand when the price changes.
D) only large changes in price affect the quantity demanded.

Question

Quizplus · Accepted Answer

Perfectly elastic demand means that consumers are extremely sensitive to a change in price, to the extent that even a tiny price increase can cause the quantity demanded to drop to zero.

Perfectly Elastic Demand Occurs When