If the demand curve looks like a horizontal flat line, it is said that demand is perfectly elastic.
When demand in market is affected by a small change in price, that demand becomes a perfectly elastic demand.
In perfectly elastic demand, a little increase in the price causes a fall in demand. Leading demand to zero. While a little decrease in price causes an increase in demand to infinity.
In such a case, we conclude that demand is perfectly elastic.
If Candies and Tacos have a relatively flat demand curve, it means that their prices are very stable and will rarely if every change.
A horizontal demand curve is a flat curve with a slope of zero. It is a perfectly elastic demand curve. Because the slope of the curve is zero, it is impossible for the price to change in the market.
A reference group is a group that people compare themselves to—it provides a standard of measurement. In U.S. society, peer groups are common reference groups
