Glossary · Micro · Elasticity

Perfectly elastic demand

Demand where buyers will take any amount at one price and nothing at a higher price, so PED is infinite and the curve is a horizontal line. A single wheat farmer faces demand like this.

Taught in: Perfectly Elastic and Perfectly Inelastic

Related terms

Perfectly inelastic demandElastic demandPrice taker

More from elasticity

Cross-price elasticity of demand (XED)Determinants of PEDDeterminants of PESIncome elasticity of demand (YED)Inelastic demandLuxury goodMidpoint formula

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