A perfectly elastic demand is one in which the:
A) demand curve is perfectly vertical.
B) demand curve is perfectly horizontal.
C) price elasticity is exactly 1.
D) response to a change in price is immediate.

Question

Quizplus · Accepted Answer

A perfectly elastic demand curve is one where any change in price results in an infinitely large change in quantity demanded. This leads to the demand curve being perfectly horizontal, since any change in price will not affect the quantity demanded.

A Perfectly Elastic Demand Is One in Which The