Advertisements
Advertisements
Question
Which is the implication of a horizontal demand curve?
Options
Perfectly elastic demand
Perfectly inelastic demand
Inelastic demand
Elastic demand
Advertisements
Solution
Perfectly elastic demand
Explanation:
A horizontal demand curve implies that the demand is perfectly elastic, meaning that consumers will buy any quantity of the good at a specific price. Still, if the price changes even slightly, the quantity demanded will drop to zero.
APPEARS IN
RELATED QUESTIONS
Which of the following goods have inelastic demand?
Identify elastic demand when value of Ed is ______.
Which of the following goods has elastic demand?
Mention the degree of price elasticity of demand for the following goods:
Cosmetics
Study the statement given below and state whether demand will be elastic or inelastic, citing reasons for your answer.
Demand for cigarettes by a habitual smoker.
When is the demand of a commodity said to be inelastic?
When is the demand for a commodity said to be perfectly inelastic?
What is price elasticity of demand for life saving drugs?
A list of goods is given below. state whether the price elasticity of demand is inelastic, relatively elastic, highly elastic or highly inelastic. Give reasons to support your answer.
demand for refrigerators
A list of goods is given below. state whether the price elasticity of demand is inelastic, relatively elastic, highly elastic or highly inelastic. Give reasons to support your answer.
Demand for precious stones and costly jewellery
