Question

In case of ______, there is an infinite demand at a particular price and demand becomes zero with a slight rise in price.

Options

• Perfectly inelastic demand

• Highly elastic demand

• Less elastic demand

• Perfectly elastic demand

Answer 1

In case of Perfectly elastic demand, there is an infinite demand at a particular price and demand becomes zero with a slight rise in price.

Explanation:

Perfectly elastic demand has infinite quantity demanded at a particular price, but demand falls to zero if price rises even slightly. Perfectly inelastic demand, by contrast, does not change with price.