Question

A rancher in Oklahoma decides to raise the price of her beef by 19% over the prevailing market price. If the demand for beef is perfectly elastic, this rancher's quantity demanded will:
a. fall to 0.
b. not change.
c. increase slightly.
d. fall slightly.

Answer 1

Answer:

a. fall to 0. 

Explanation:

When a good is perfectly elastic, a rise in the price of the good would make the demand for the good to fall to zero .

The demand curve for a good with perfect elasticity is horizontal.

If the demand for a good is perfectly inelastic, a change in price has no effect on the quantity demanded.

Demand is inelastic when a change in price has a little effect on the quantity demanded.

Demand is elastic when a change in price has a great effect on the quantity demanded.

I hope my answer helps you.