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A perfectly elastic demand implies that: (i) any rise in price above that represented by the demand curve will result in a quantity demanded of
A perfectly elastic demand implies that:
(i) any rise in price above that represented by the demand curve will result in a quantity demanded of zero.
(ii) buyers will not respond to any change in price.
(iii) quantity demanded and price change by the same percent as we move along the demand curve.
(iv) the price will rise by an infinite amount when there is a change in quantity demanded.
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