2.2.3 Perfectly of infinitely elastic demand

2.2.3 Perfectly of infinitely elastic demand

When a small change in price of a good causes more than a proportionate change (in both ways) in the quantity it is called perfectly or infinitely elastic demand. The demand curve will be a horizontal line, parallel to the X- axis in the graph.

Last modified: Wednesday, 21 December 2011, 6:47 AM