which of the following statements is an example of perfectly elastic demand? A. A high incidence of diabetes has resulted in a large increase in demand for insulin B. A10 percent rise in Rita's income decreases supply of canned fish by 5 percent. C. Sherry is overwhelmed with buyers of her peaches when she lowers their price by a penny a pound compared to other sellers in the farmers' market. D. The price elasticity of demand for bottled water in Ohio is 1.5 while in Illinois it is 0.96 .

The correct answer is C. Sherry is overwhelmed with buyers of her peaches when she lowers their price by a penny a pound compared to other sellers in the farmers' market.<br /><br />Perfectly elastic demand refers to a situation where a small change in price leads to an infinite change in quantity demanded. In this case, Sherry's peaches have perfectly elastic demand because a small decrease in price (by a penny a pound) results in a significant increase in the number of buyers, indicating that consumers are highly responsive to price changes.