Exhibit 5-15
-Which demand curve in Exhibit 5-15 is perfectly elastic?
A) the curve in graph a
B) the curve in graph b
C) the curve in graph c
D) the curve in graph d
E) the curve in graph e

Question

Exhibit 5-15 
-Which demand curve in Exhibit 5-15 is perfectly elastic?
A) the curve in graph a 
B) the curve in graph b 
C) the curve in graph c 
D) the curve in graph d 
E) the curve in graph e

Quizplus · Accepted Answer

The demand curve in graph b is perfectly elastic because even a slight increase in price will cause quantity demanded to drop to zero. This means that consumers have many substitute products available that they can easily switch to if the price of this product increases even slightly.

Exhibit 5-15 -Which Demand Curve in Exhibit 5-15 Is Perfectly Elastic