ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Zero
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Infinite
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Equal to one
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Greater than zero but less than infinity
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Detailed explanation-1: -The horizontal demand curve parallel to the x-axis implies that the elasticity of demand is infinite. The demand curve illustrates the relationship between price and quantity demanded of a particular good or service.
Detailed explanation-2: -The horizontal demand curve parallel to X-axis implies that the elasticity of demand is infinite.
Detailed explanation-3: -Answer: When demand curve is parallel to x-axis then elasticity of demand will be perfectly elastic as there is infinite demand at constant price. In this case, a slightest increase in price will reduce the demand for the product to zero.
Detailed explanation-4: -A demand curve which is represented by a horizontal line parallel to the quantity axis (x axis) illustrates elasticity, which is infinite, implying perfectly elastic demand.
Detailed explanation-5: -Perfectly elastic demand curve is parallel to X axis or say is a horizontal straight line. This is because at the given price the quantity demanded is infinite, even if there is a slight change in the price the demand becomes infinity and hence the curve is flat.