The demand curve in the graph is horizontal. Its price elasticity of demand is A horizontal demand curve D at a price of ₹10, running across all quantities.

The demand curve in the graph is horizontal.

Question 35

EasyOriginal question

The demand curve in the graph is horizontal. Its price elasticity of demand is

A horizontal demand curve D at a price of ₹10, running across all quantities.

zero: perfectly inelasticCorrect answerYour answerinfinite: perfectly elasticCorrect answerYour answerone: unitary elasticCorrect answerYour answerless than oneCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

At ₹10 buyers take any quantity; at the slightest rise above ₹10 they take nothing.
An infinite response to a tiny price change is perfectly elastic demand.

Concept: Perfectly elastic demand
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsDegrees of elasticity

Practise this chapter →

Ten questions from Price Elasticity of Demand, at your own pace.

Practise this chapter →

Ten questions from Price Elasticity of Demand, at your own pace.

The demand curve in the graph is horizontal.

Question 35

Explanation