The demand curve in a perfectly competitive market is perfectly elastic. TRUE or FALSE.
Question:
The demand curve in a perfectly competitive market is perfectly elastic.
TRUE or FALSE.
Perfectly Elastic Demand:
Perfect elastic demand refers to the infinite demand for a good at a particular price. It is visualized as a horizontal line fixed at some price. The quantity demanded is thus constant regardless of price.
Answer and Explanation: 1
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View this answerAnswer: False
The demand curve of a perfectly competitive market is downward sloping, and it is different from a perfectly competitive firm with a...
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What is Elasticity in Economics? - Definition, Theory & Formula
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Chapter 4 / Lesson 8
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Learn the definition of elasticity in economics. Understand the elasticity formula, the ways used to measure elasticity, and who created the theory of elasticity.
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