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Question
The price elasticity of demand on a linear demand curve at the X-axis is ______.
Options
zero
one
infinity
less than one
MCQ
Fill in the Blanks
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Solution
The price elasticity of demand on a linear demand curve at the X-axis is zero.
Explanation:
The price elasticity of demand on a linear demand curve at the X-axis is zero. Because any change in price from zero doesn’t change the quantity demanded much (or from zero to something), while at the Y-axis (price is maximum, quantity is zero), it’s infinity (perfectly elastic).
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