Question

True/False

Demand in which quantity demanded drops to zero at the slightest increase in price is called perfectly elastic

Answer 1

True

Step-by-step explanation:

Perfectly elastic demand refers to a situation in which any change or slightly change in the price of a commodity lead to a fall in the quantity demanded to zero.

Perfectly elastic demand curve is defined as the horizontal line. It represents the relationship between the price of the commodity and the quantity demanded of the commodity. This demand curve clearly shows that any change in price would eliminate all the demand. for the good.