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In case of straight line demand curve meeting two axis, the price elasticity of demand at the point where the curve meets Y-axis would be A: Zero. B: Greater than one C: Less than one D: Infinity?
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In case of straight line demand curve meeting two axis, the price elas...
Introduction:
The price elasticity of demand measures the responsiveness of quantity demanded to changes in price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price.
Straight line demand curve:
A straight line demand curve is one in which the price and quantity demanded have a linear relationship. This type of demand curve is often used as a simplification in economic models.
Meeting two axis:
When a straight line demand curve meets two axis, it means that the quantity demanded is zero at one point and the price is zero at another point. These two points are known as the intercepts.
Price elasticity of demand at Y-axis:
At the point where the straight line demand curve meets the Y-axis, the quantity demanded is zero. This means that the percentage change in quantity demanded will also be zero, regardless of the percentage change in price. Therefore, the price elasticity of demand at the Y-axis is:
Answer:
A: Zero
Explanation:
At the point where the straight line demand curve meets the Y-axis, the quantity demanded is zero. This means that the percentage change in quantity demanded will also be zero, regardless of the percentage change in price. Therefore, the price elasticity of demand at the Y-axis is zero. This also means that the demand is perfectly inelastic at this point.
The price elasticity of demand measures the responsiveness of quantity demanded to changes in price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price.
Straight line demand curve:
A straight line demand curve is one in which the price and quantity demanded have a linear relationship. This type of demand curve is often used as a simplification in economic models.
Meeting two axis:
When a straight line demand curve meets two axis, it means that the quantity demanded is zero at one point and the price is zero at another point. These two points are known as the intercepts.
Price elasticity of demand at Y-axis:
At the point where the straight line demand curve meets the Y-axis, the quantity demanded is zero. This means that the percentage change in quantity demanded will also be zero, regardless of the percentage change in price. Therefore, the price elasticity of demand at the Y-axis is:
Answer:
A: Zero
Explanation:
At the point where the straight line demand curve meets the Y-axis, the quantity demanded is zero. This means that the percentage change in quantity demanded will also be zero, regardless of the percentage change in price. Therefore, the price elasticity of demand at the Y-axis is zero. This also means that the demand is perfectly inelastic at this point.
Community Answer
In case of straight line demand curve meeting two axis, the price elas...
Infinity. when a straight line downward demand curve is drawn meeting two axis . Then the elasticity of demand increases as we move upward from X axis to Y axis ....
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In case of straight line demand curve meeting two axis, the price elasticity of demand at the point where the curve meets Y-axis would be A: Zero. B: Greater than one C: Less than one D: Infinity?
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In case of straight line demand curve meeting two axis, the price elasticity of demand at the point where the curve meets Y-axis would be A: Zero. B: Greater than one C: Less than one D: Infinity? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about In case of straight line demand curve meeting two axis, the price elasticity of demand at the point where the curve meets Y-axis would be A: Zero. B: Greater than one C: Less than one D: Infinity? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In case of straight line demand curve meeting two axis, the price elasticity of demand at the point where the curve meets Y-axis would be A: Zero. B: Greater than one C: Less than one D: Infinity?.
In case of straight line demand curve meeting two axis, the price elasticity of demand at the point where the curve meets Y-axis would be A: Zero. B: Greater than one C: Less than one D: Infinity? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about In case of straight line demand curve meeting two axis, the price elasticity of demand at the point where the curve meets Y-axis would be A: Zero. B: Greater than one C: Less than one D: Infinity? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In case of straight line demand curve meeting two axis, the price elasticity of demand at the point where the curve meets Y-axis would be A: Zero. B: Greater than one C: Less than one D: Infinity?.
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