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Describe the general appearance of a demand or a supply curve with infinite elasticity.

Infinite elasticity is the extreme case in which percentage change in quantity occurs infinitely inresponse to any percentage change in price. It is also called as perfect elasticity.Graphically, infinite elasticity is represented by horizontal line. The diagram below shows that,infinite quantity is demanded and supplied at given price level P.

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Chapter 5

Elasticity

How Markets Work

Markets and Welfare

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all right, This is number 14 from chapter five. It's asking Describe the general appearance of a demand or supply curve with infinite elasticity. So let's think about what infinite US this is. That means for percent change, quantity over percent change price equals infinity over one. So let's think about how we can graft this. Remember, the quantity is here. Price is here. And so for an increase from, let's say, a to be in price, the increase is gonna be from, you know, a two invented it. Sze never gonna increase. People are just gonna either completely stop buying it or completely start buying it. And what's that gonna look like? Well, I was poorly drawn. It's gonna be a flatline slope of zero. So for a demand curve, it's going to be like that. This is the demand curve. This is a supply for a supply curve. It'll be like that. That's the supply. That's the

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