A perfectly elastic demand curve is _____
A)a vertical straight line.
B)a horizontal straight line.
C)a downward-sloping straight line.
D)an upward-sloping straight line.
E)u-shaped.

Question

Quizplus · Accepted Answer

A perfectly elastic demand curve means that any increase in price will lead to consumers completely stopping their purchases of the good. In other words, the quantity demanded is infinitely responsive to changes in price. This results in a demand curve that is a horizontal straight line, as the price can change without affecting the quantity demanded.

A Perfectly Elastic Demand Curve Is _____