Question : When demand is perfectly elastic then it will be____?
Option 1: Ed=0
Option 2: Ed=1
Option 3: Ed=∞
Option 4: None of the above
Answer (1)
7th Jan, 2024
Correct Answer: Ed=∞
Solution :
The demand curve is horizontal and straight when it is perfectly elastic. This is because the amount demanded at the current price is unlimited; even a small change in the price causes the quantity demanded to become infinite, resulting in a flattening of the curve.
Hence c is the correct answer.
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