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Question
When will the demand curve be parallel to x-axis?
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Solution
Demand curve will become parallel to the x-axis, if the value of elasticity of demand is infinity.
RELATED QUESTIONS
Explain any two factors that affect the price elasticity of demand. Give suitable examples.
Match the following :
| Group 'A' | Group 'B' |
| (a) Demand and price | (1) wages |
| (b) Perfectly elastic supply | (2) Vertical supply curve |
| (c) Land | (3) Transfer income |
| (d) Unemployment allowance | (4) Horizontal supply curve |
| (e) Reserve Bank of India | (5) Inverse relation |
| (6) Rent | |
| (7) 1935 | |
| (8) Direct relation |
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Ratio method of measuring price elasticity of demand ?
Choose the correct answer :
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A consumer prefers to postpone the purchase of a car to avail more of year ending discount.
Elasticity of demand for two goods A and B is -2 and -3 respectively. Then good A has higher elasticity.
The government wants to reduce the consumption of good by 10%. The price elasticity of demand for elasticity is -0.4. The government should raise the price of elasticity by ______.
What is the implication of a vertical demand curve?
The price of Y falls from ₹ 8 to ₹ 6. The quantity demanded increases from 100 units to 125 units. The price electricity of demand will be ______.
When the price elasticity of demand for a good equals ______.
The nature of a commodity determines its price elasticity of demand. Explain.
Explain briefly the factors on which elasticity of demand depends.
Discuss any three/ four factors determining price elasticity of demand.
How does the nature of a good affect its elasticity of demand?
How does the time period affect the elasticity of demand?
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What effect do habitual consumption patterns have on price elasticity of demand?
