Apr 21 2012

Perfectly elastic Demand

Published by at 8:06 pm under

When any change in the price of a good leads to a nearly infinite change in the quantity consumers demand. For example if the price rises at all, no one will wish to buy the good. If the price decreases at all, every consumer will wish to buy the good. Demand for a perfect competitor’s output is perfectly elastic, due to the countless perfect substitutes available to consumers.

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