A perfectly elastic demand curve:
A)is impossible to graph given only the variables of price and quantity demanded
B)can be represented by a line parallel to the horizontal axis
C)slopes downward, reflecting the law of demand
D)can be represented by a line parallel to the vertical axis
E)slopes upward and to the right, breaking the law of demand

Question

Quizplus · Accepted Answer

A perfectly elastic demand curve is one where any increase in price results in an infinite decrease in quantity demanded, and any decrease in price results in an infinite increase in quantity demanded. This means that the demand curve is horizontal, as the quantity demanded changes instantly and completely in response to any change in price.

A Perfectly Elastic Demand Curve