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Question
A perfectly elastic demand curve is parallel to the X-axis. Why or why not?
Solution
A perfectly elastic demand curve is parallel to the X-axis because the buyers are willing to buy any quantity at a given price.
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| Column I | Column II | ||
| (i) | Perfectly elastic demand | A. | Ed = 0 |
| (ii) | Perfectly inelastic demand | B. | Ed = ∞ |
| (iii) | Relatively elastic demand | C. | Ed < 1 |
| (iv) | Relatively inelastic demand | D. | Ed > 1 |
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| Column I | Column II |
| A. Perfectly Elastic | (i) Ed = 0 |
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| D. Less Elastic | (iv) Ed > I |
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