A perfectly elastic demand curve
A) shows that a slight change in income will lead to a large reduction in price.
B) is a vertical line drawn across from the quantity axis.
C) shows that a slight increase in price will reduce quantity demanded to zero.
D) has a slope of -1.

Question

Quizplus · Accepted Answer

A perfectly elastic demand curve indicates that even a very small increase in price will cause the quantity demanded to drop to zero, reflecting consumers' infinite sensitivity to price changes in this scenario.

A Perfectly Elastic Demand Curve