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Question
The demand curve is parallel to the X-axis in the case of ______.
Options
perfectly elastic demand
perfectly inelastic demand
relatively elastic demand
relatively inelastic demand
MCQ
Fill in the Blanks
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Solution
The demand curve is parallel to the X-axis in the case of perfectly elastic demand.
Explanation:
In the scenario where the Demand curve is parallel to the X-axis, it is the case of perfectly elastic demand (ed = ∞). Where the demand curve is a horizontal line, indicating that consumers will purchase an infinite quantity at a specific price, but demand falls to zero if the price changes even slightly.
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