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प्रश्न
When the price elasticity of demand for a good equals ______.
विकल्प
0, the demand cure is horizontal
1, the demand curve is vertical
1, the demand curve is horizontal
0, the demand curve is vertical
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उत्तर
When the price elasticity of demand for a good equals 0, the demand curve is vertical.
Explanation:
When the price elasticity of demand for a good equals 0, the demand curve is vertical, indicating that the quantity demanded does not change regardless of the price. This situation represents perfectly inelastic demand.
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संबंधित प्रश्न
A 5 percent fall in the price of a good raises its demand from 300 units to 318 units. Calculate its price elasticity of demand.
Explain the effect of the following on the price elasticity of demand of a commodity:
(i) Number of substitutes
(ii) Nature of the commodity
State whether the following statements are TRUE or FALSE :
The demand of foodgrains is inelastic.
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A consumer prefers to postpone the purchase of a car to avail more of year ending discount.
Which of the following is the most likely reason for the relatively high elasticity of bottled water?
When will the demand curve be parallel to x-axis?
What type of demand characterizes necessity goods compared to luxury goods?
How does the time period affect the elasticity of demand?
