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Question
Choose the correct answer :
Perfectly elastic demand curve is _________.
Options
(a) parallel to ‘X’ axis
(b) parallel to ‘Y’ axis
(c) upward sloping
(d) downward sloping
Solution
4. Perfectly elastic demand curve is parallel to 'X' axis.
Explanation:
Perfectly elastic demand means that the quantity demanded changes infinitely with a change in the price of a good. It is represented by a horizontal straight line demand curve which is parallel to 'X' axis.
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