Question

In the following Question, read the following statement and choose the correct alternative among those given:

Statement 1: Demand Curve is a horizontal straight line parallel to X-axis in case of perfectly inelastic demand. 

Statement 2: The slope of less elastic demand curve is inclined more towards X-axis.

विकल्प

• Both the Statements are true.

• Both the Statements are false.

• Statement 1 is true and Statement 2 is false.

• Statement 2 is true and Statement 1 is false.

Answer 1

Both the Statements are false.

Explanation:

A perfectly inelastic demand curve is vertical and parallel to the Y-axis; a horizontal curve represents perfectly elastic demand. A less elastic demand curve is steeper and inclined more towards the Y-axis.