--%>
Assignment Help - homework help

Explain the infinitely elastic demand

Explain the infinitely elastic demand.

E

Expert

Verified

Perfectly elastic demand also called infinitely elastic:

While a small change in price leads to infinite change in quantity demanded, this is termed as perfectly elastic demand. But the demand curve is a horizontal straight line as specified below. Where ep= ∞ (infinity)

1950_Perfectly elastic demand.png

   Related Questions in Managerial Economics

  • Q : Illustrates the role of cost in pricing

    Illustrates the role of cost in pricing?

    		•
  • Q : Limitation for using illustrations of

    Illustrations of economic capital would NOT contain: (i) an accountant's computer. (ii) 1,000 shares of stock within Google. (iii) a sixteen-pound sledgehammer. (iv) tires upon an eighteen-wheeler truck. (v) paper into the printer of a romance novelis

    		•
  • Q : Illustrates the Demand function of a

    Illustrates the Demand function of a commodity?

    		•
  • Q : Least wage elastic demand for labor For

    For labor Plastibristle’s demand for labor is least wage elastic at: (i) point a. (ii) point b. (iii) point c. (iv) point d.

    Q : Equilibrium of the consumers of the two

    identify two goods consumed by the majority of the neighborhood communities. Qn. establish the equilibrium of the consumers of the two goods

    		•
  • Q : When does production take place

    Production takes place while: (w) resources are transformed within inputs. (x) goods are transformed in raw materials. (y) inputs are transformed to create them more valuable. (z) capital depreciates. Please choose

    		•
  • Q : What are the Methods of Demand

    What are the Methods of Demand Forecasting?

    		•
  • Q : Process of Automation Automation is the

    Automation is the process of: (1) adapting equipment which is safer for workers to operate. (2) kinetic engineering which smoothes flows of work on an assembly line. (3) scientific management of robotic factories. (4) substituting sophisticated machin

    		•
  • Q : What are the features of phases of

    What are the features of phases of business cycle?

    		•
  • Q : Charging similar price by pure

    When all firms in an industry charge similar price for their product, it: (w) proves the existence of a cartel. (x) proves the existence of price leadership. (y) indicates an oligopoly. (z) may be consistent along with either pure competition or oligo

    		•