A Demand Curve Is Described as Perfectly Elastic if
The graph of a perfectly elastic supply curve is a horizontal line at a price meaning that if the quantity supplied increases so does the price. Definition of Perfectly Elastic Demand. Types Of Price Elasticity Of Demand Example Graphs A perfectly elastic demand is one whos demand curve is a perfectly horizontal line. . Thus a change in price would eliminate all demand for the product. Neither price nor quantity demanded ever change. Demand is described as elastic when the computed elasticity is greater than 1 indicating a high responsiveness to changes in price. The same quantity is sold regardless of price. Unitary elasticities indicate proportional responsiveness of demand. Any quantity can be sold at a given price. If the curve is perfectly flat horizontal then we say that it is perfectly elastic. Any quantity can be sold at a given price. This means that elasticity in demand is perfect the reason for ...