Q5
The horizontal demand curve parallel to x-axis implies that the elasticity of demand is
A.
Zero
B.
Infinite
AnswerC.
Equal to 1
D.
Greater than zero but less than infinity
Answer: Option B
Solution
Answer: Option B
Solution:
The horizontal demand curve parallel to x-axis implies that the elasticity of demand is infinite.It is zero when the demand curve is parallel to the y-axis.