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
Answer (1)
10th Jan, 2024
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.
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