Example pls

[arifjama...@gmail.com]

Hi,

I have a question about what is happening in this video at 00:22:46 -

http://www.youtube.com/watch?v=Bz8d_Whr_p8#t=1366s.

Pls explain Perfectly Elastic Demand with the help of any example..

Thanks!

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Reference Key - Key('StudentQuestionEntity', 5721226077536256, namespace='ns_noc21_mg90')

[NOC21 MG90]

Dear Learner, 

Perfect Elastic demand is the case which can be view as all or nothing scenario where a slight decrease in price will lead to infinite demand and demand will fall to zero when price increases. You can think of the MARS MISSION scenario of Tesla as an example If the price remains high as such no one will want to go to MARS but if they decrease the price a lot of people will line up for the same. As these are the extreme cases of elasticity there scenarios in real world are rare.