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

Answer 1

The demand curve is parallel to the X-axis in the case of perfectly elastic demand.

Explanation:

A demand curve parallel to the X-axis represents perfectly elastic demand. When there is no change in the price of a commodity, or even a negligible change in price leads to an infinite change in its quantity demanded, it is called perfectly elastic demand. In such a situation, consumers can demand an infinite quantity at the prevailing price, causing the demand curve to take the form of a horizontal straight line parallel to the X-axis.