Question : The horizontal and parallel to the x-axis demand curve indicates that the elasticity of demand is____.
Option 1: Infinite
Option 2: Zero
Option 3: Greater than zero
Option 4: Equals to one
Correct Answer: Infinite
Solution : The horizontal demand curve parallel to X-axis implies that the elasticity of demand is infinite. A perfectly elastic demand curve is parallel to the X - axis because the buyers are willing to buy any quantity of the good at a given price. Hence option a is the correct answer.
Question : A demand curve, which is parallel to the horizontal axis, showing quantity, has a price elasticity equal to
Question : The price elasticity of demand for a perfectly elastic demand curve is:
Question : The elasticity of demand for luxury goods is:
Question : Perfectly inelastic demand is equal to:
Question : In general, the demand curve slopes:
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