Question : A perfectly elastic demand curve is:
Option 1: Horizontal.
Option 2: Vertical.
Option 3: Upward-sloping.
Option 4: Downward-sloping.
Answer (1)
18th Jan, 2024
Correct Answer: Horizontal.
Solution : The correct answer is (a) Horizontal.
A perfectly elastic demand curve is represented by a horizontal line. It means that even a slight change in price will result in an infinite change in quantity demanded. In other words, consumers are extremely responsive to changes in price, and they will only purchase the good or service at a specific price. As a result, the quantity demanded can change significantly without any change in price.
Comments (0)
