The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1

-If the demand for cream cheese produced by a dairy is perfectly elastic, then:
A)the demand curve will be vertical.
B)the demand curve will be horizontal.
C)the demand curve will be upward sloping.
D)the demand curve will be downward sloping.
E)the demand curve will initially slope upward and then slope upward.

Question

The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1
 
-If the demand for cream cheese produced by a dairy is perfectly elastic, then:
A)the demand curve will be vertical. 
B)the demand curve will be horizontal. 
C)the demand curve will be upward sloping. 
D)the demand curve will be downward sloping. 
E)the demand curve will initially slope upward and then slope upward.

Quizplus · Accepted Answer

Perfectly elastic demand means that consumers are willing to buy any quantity of the product at a constant price. As a result, the demand curve will be a horizontal line at that price level.

The Figure Given Below Shows the Demand Curves for Five