Define perfectly elastic.
Understand the Problem
The question is asking for a definition of 'perfectly elastic,' which is a term often used in economics to describe a situation where the demand for a product changes infinitely with a small change in price. This concept highlights how sensitive consumers are to price changes in such scenarios.
Answer
The quantity demanded changes infinitely with even a minimal change in price.
Perfectly elastic demand occurs when the quantity demanded changes infinitely with even a minimal change in price.
Answer for screen readers
Perfectly elastic demand occurs when the quantity demanded changes infinitely with even a minimal change in price.
More Information
This concept is typically illustrated by a perfectly horizontal demand curve, showing that any increase in price will lead to zero demand.
Sources
- What is Perfectly Elastic Demand? | Examples, Factors, Conclusion - carboncollective.co
- Definition of Perfectly Elastic Demand | Higher Rock Education - higherrockeducation.org
- Price Elasticity of Demand | E B F 200 - Dutton Institute - e-education.psu.edu
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