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Similarly, perfectly elastic demand is an extreme example. Perfect elastic demand means that quantity demanded will increase to infinity when the price How Does Perfectly Elastic Demand Work In Economics? - Learn About Economics Perfectly elastic demand means when the percentage of change in quantity demanded is infinite even if the percentage of change in price is zero.
A perfectly elastic demand is a demand where any price increase would cause the quantity demanded to fall to zero. Imagine you're shopping for your favorite brand of cereal, and you notice the price has increased by 20%. Do you immediately Goods with perfectly elastic demand are ones where demand goes down to zero with any increase in price no matter how small.
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