Infinite increase in demand at an even slightly lower price change and no demand at all at an even slightly higher price change indicates which type of elasticity of demand?

Perfectly elastic

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Perfectly inelastic

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Elastic

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Unit elastic

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Solution

The correct option is A
Perfectly elastic

Perfectly elastic is a situation in which a small change in the price causes an infinitely large change in the amount demanded.

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Similar questions

Q. Distinguish between:

1. Perfectly elastic demand and perfectly inelastic demand

2. Relatively elastic demand and relatively inelastic demand

Show with the help of a diagram, the effect on equilibrium price and quantity when:
(i) Demand is perfectly elastic and supply decreases.
(ii) Supply is perfectly inelastic and demand increases.
(iii) The demand curve is perfectly elastic and the supply curve shifts outwards.

Q. Equilibrium price never changes in a situation of perfectly elastic supply, no matter what the demand is. Is it true?

Q. Which one of the following is correct?
1. Elasticity of demand states the relationship between price and demand
2. Elasticity of demand explains the degree of responsiveness of demand to change in price
3. Elasticity states the inverse relationship between price and demand
4. Elasticity of demand explains the direct relationship between price and demand

Make a list of products for which you think demand is price inelastic and price elastic .

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Infinite increase in demand at an even slightly lower price change and no demand at all at an even slightly higher price change indicates which type of elasticity of demand?

The correct option is A Perfectly elastic Perfectly elastic is a situation in which a small change in the price causes an infinitely large change in the amount demanded.

The correct option is A
Perfectly elastic

Perfectly elastic is a situation in which a small change in the price causes an infinitely large change in the amount demanded.