If the demand is perfectly elastic, what would happen to the quantity demanded if there is a tiny increase in price?
A)quantity demanded will increase proportionately
B)quantity demanded will fall to zero
C)quantity demanded will register a disproportionately high increase
D)quantity demanded will decrease proportionately
E)quantity demanded will remain the same

Question

Quizplus · Accepted Answer

If the demand is perfectly elastic, a tiny increase in price will cause the quantity demanded to fall to zero. This is because consumers are very sensitive to price changes, and even a small increase in price will cause them to stop buying the product.

If the Demand Is Perfectly Elastic, What Would Happen to the Quantity