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.

Question

Quizplus · Accepted Answer

In a perfectly elastic demand scenario, any small change in price results in the quantity demanded dropping to zero, indicating consumers are highly sensitive to price changes.

If Demand for a Given Good Is Perfectly Elastic, It