Saved Bookmarks
| 1. |
Price Elasticity of Demand isinfinty in case of horizontal straight line demand curve. |
|
Answer» Solution :In case of horizontal straight line demand curve, SLOPE of demand curve is zero. As a RESULT, price elasticity of demand is infinity . It is PROVED as under. Elasticity of Demand `(E_(d))= 1/("Slope of demand Curve")xxP/Q=1/0xxP/Q=oo` |
|