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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`


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