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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.
Options
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.
MCQ
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Solution
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.
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