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Question

Perfectly elastic demand curve is _____ .

A
horzontal to X axis
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B
vertical to Y axis
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C
flatter
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D
steeper
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Solution

The correct option is C horzontal to X axis
Perfectly elastic demand curve is horizontal straight line. This is because at the given price the quantity demanded is infinite, even if there is a slight change in the price the demand becomes infinity and hence the curve is flat.

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