AP MicroeconomicsElasticity
Perfectly Elastic
Perfectly elastic demand is when any change in price leads to an infinite change in quantity demanded.
In perfectly elastic demand, consumers are infinitely sensitive to price changes. This means that even the slightest increase in price will cause the quantity demanded to drop to zero. Perfectly elastic demand is a theoretical concept that is not often observed in real markets.
Formula / Example
Price Elasticity of Demand = ∞
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