62. What is the degree of elasticity of demand in case of the follow – InterviewSolution

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1.	62. What is the degree of elasticity of demand in case of the following demand curves i)Straight lino parallel ito X-axis ?ii) straight lino parallel to y-axisiii) A rectangular hyperbola curve
Answer» tion:For a horizontal demand curve parallel to the X axis, the elasticity is infinite. In other words, the demand is perfectly ELASTIC: a small CHANGE in price causes a large DECREASE in QUANTITY demanded.

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