A perfectly elastic demand curve exhibits
A) zero responsiveness to changes in price.
B) that quantity demanded will decrease to zero when there is a slight increase in the price level.
C) a change in quantity demanded that is proportional to the change in price.
D) a change in quantity demanded that is always twenty percent of the change in price.

Question

Quizplus · Accepted Answer

A perfectly elastic demand curve means that consumers are extremely sensitive to price changes, and even a slight increase in price will cause the quantity demanded to drop to zero.

A Perfectly Elastic Demand Curve Exhibits