CA Foundation Exam  >  CA Foundation Questions  >  In case of straight line demand curve meeting... Start Learning for Free
 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.
View all questions of this test
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.
Free Test
Community Answer
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
Explore Courses for CA Foundation exam
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?
Question Description
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? 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 onec)Less than oned)InfinityCorrect answer is option 'D'. Can you explain this answer? 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 onec)Less than oned)InfinityCorrect answer is option 'D'. Can you explain this answer?.
Solutions 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 onec)Less than oned)InfinityCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of 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? defined & explained in the simplest way possible. Besides giving the explanation of 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?, a detailed solution 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 onec)Less than oned)InfinityCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of 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? theory, EduRev gives you an ample number of questions to practice 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? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev