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in Economics by (26.3k points)
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Fill in the blank with appropriate alternatives given below:

Perfectly elastic demand curve is ____________.

Options 

  • horizontal to OX axis 
  • horizontal to OY axis 
  • flatter 
  • steeper

1 Answer

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Best answer

Perfectly elastic demand curve is horizontal to OX axis.

Explanation:

Demand for a good is said to be perfectly elastic when the demand is infinitely responsive to changes in price. In other words, even a small change in price brings about a large change in demand. Such a demand curve is a horizontal straight line parallel to x-axis.

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