perfectly elastic demand curve?

Hi,

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)

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  • 9 years ago
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    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.

    Scroll down to "Elastic vs. Inelastic supply and demand curves":

    http://www.strom.clemson.edu/becker/prtm320/econom...

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