Choose the correct answer :
Perfectly elastic demand curve is _________.
(a) parallel to ‘X’ axis
(b) parallel to ‘Y’ axis
(c) upward sloping
(d) downward sloping
4. Perfectly elastic demand curve is parallel to 'X' axis.
Perfectly elastic demand means that the quantity demanded changes infinitely with a change in the price of a good. It is represented by a horizontal straight line demand curve which is parallel to 'X' axis.
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