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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
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
In case of straight line demand curve meeting two axis, the price elas...
The slope of a straight-line demand curve, one with a constant slope, has constantly changing elasticity. ... No two points on a straight-line demand curve have the same elasticity. The price elasticity of demand is different at each point on a demand curve with constant slope.
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Most Upvoted Answer
In case of straight line demand curve meeting two axis, the price elas...
Price Elasticity of Demand at the Point where the Curve meets Y-Axis is Infinity
Explanation:
- A straight line demand curve that meets both the X-axis (quantity) and Y-axis (price) is a perfect vertical line, and it represents perfectly inelastic demand.
- The vertical line indicates that no matter what the price, the quantity demanded remains the same.
- The formula for price elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price.
- In this case, since the quantity demanded is constant, the percentage change in quantity demanded is zero.
- When we divide anything by zero, it results in infinity, and hence the price elasticity of demand at the point where the curve meets Y-axis is infinity.
Explanation:
- A straight line demand curve that meets both the X-axis (quantity) and Y-axis (price) is a perfect vertical line, and it represents perfectly inelastic demand.
- The vertical line indicates that no matter what the price, the quantity demanded remains the same.
- The formula for price elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price.
- In this case, since the quantity demanded is constant, the percentage change in quantity demanded is zero.
- When we divide anything by zero, it results in infinity, and hence the price elasticity of demand at the point where the curve meets Y-axis is infinity.
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In case of straight line demand curve meeting two axis, the price elas...
Infinite elasticity of demand graph originates horizontally from y axis which is parallel to x axis.
So when demand curve meet y axis, it is the fixed price where there can be infinite change in demand without any change in price.
A
So when demand curve meet y axis, it is the fixed price where there can be infinite change in demand without any change in price.
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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 onec)Less than oned)InfinityCorrect answer is option 'D'. Can you explain this answer?
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