perfectly elastic demand curve?
For a perfectly elastic demand, what happens to quantity demanded if the price decreases slightly below the required price?
i.e. If I have a perfectly elastic demand for a good A at $3 / unit .. what would happen to my demand at $2.99? (I know for any increase about $3 the demand drops to zero, but I'm wondering if the reverse case is true)
- Violet WLv 79 years agoFavorite Answer
If it were *perfectly* elastic, demand would be infinite at all prices less than $3. A perfectly elastic demand graph is a vertical line. And, when the price is at $3, you can not tell from the graph what the demand is since the line is vertical. The demand could be at any value.
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