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Management · Q233

Managerial Economics

Graduate and Post Graduate · Management · question 233

Q233

Which of the following statement is correct?

A.
When the slope of the demand curve is zero, demand is infinitely elastic and when the slope is infinite, elasticity is zero
Answer
B.
When the slope of the demand curve is zero, elasticity is unity and also when the slope is infinite, elasticity is unity
C.
When the slope of the demand curve is zero, elasticity is also zero and when the slope is infinite, elasticity is also in finite
D.
None of these

Answer: Option A

Solution

Answer: Option A
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