What is meant by price elasticity of demand? When will the demand curve be parallel to X-axis?

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Solution

Price elasticity of demand is defined as a measurement of percentage change in quantity demanded in response to a given percentage change in own price of the commodity.

Demand curve is parallel to X- axis n case of perfectly elastic demand. A perfectly elastic demand refers to the situation when demand is infinite at the prevailing price.

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A perfectly elastic price-demand curve is parallel to the X - axis. Why or why not ?

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