Perfectly elastic demand

Perfectly elastic demand,

Definition of Perfectly elastic demand:

  1. A theoretical economic situation in which the interest of consumers in purchasing a business product is extinguished if the price of the product rises or consumer interest rises to infinity if the price falls. In a perfectly elastic demand situation, the responsiveness of demand to a change in price or the price elasticity is infinite, thereby resulting in a flat demand curve.

Meaning of Perfectly elastic demand & Perfectly elastic demand Definition