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What is perfectly elastic demand? Explain with the help of an example and diagram |
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Answer» In perfectly elastic demand, a SMALL rise in PRICE results in FALL in demand to zero, while a small fall in price causes increase in demand to infinity. In such a case, the demand is perfectly elastic or ep = 00. ADVERTISEMENTS: The degree of ELASTICITY of demand helps in defining the shape and slope of a demand curve.Explanation:PLEASE follow me |
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