Perfectly elastic definition economics

2019-11-13 18:35

Perfectly elastic supply, by definition, means that any decrease in the product price would immediately cause the supply to shift to zero. Algebraically, it means that the elasticity of a good or service (the percentage change of quantity the peIn economics, my buut is the measurement of the amount of change an economic variable has to response or to a change in another. It shows how easy it is for the supplier and consumer to change their behavior and substitute another good, the strength of an incentive over choices per the relative opportunity cost. perfectly elastic definition economics

Perfectly Elastic Demand. View FREE Lessons! Definition of Perfectly Elastic Demand: A perfectly elastic demand is a demand where any price increase would cause the quantity demanded to fall to zero, and reducing the price of a good or service will not increase sales. Detailed Explanation: A perfectly elastic demand curve is horizontal at the market price.

Aug 13, 2018 The quantity demanded will change much more than the price. As a result, the curve will look lower and flatter than the unit elastic curve, which is a diagonal. The more elastic the demand is, the flatter the curve will be. The graph below shows the horizontal line of a perfectly elastic demand curve. perfectly elastic definition economics

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