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Management · Q45

Managerial Economics

Graduate and Post Graduate · Management · question 45

Q45

Which of the following statement is correct about demand curve?

A.
When slope is zero, elasticity is zero; when slope is infinite, elasticity is also infinite
B.
When slope is zero, elasticity is unitary and when slope is infinite, elasticity is still unitary
C.
When slope is zero, demand is infinitely elastic; when slope is infinite, elasticity is zero
Answer
D.
None of the above

Answer: Option C

Solution

Answer: Option C
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