Complete the following statement : Demand curve is parallel to 'X' axis in case of ______.

Q.1 (C) (iii) Complete the following statement : Demand curve is parallel to 'X' axis in case of ______.

A. (a) Perfectly elastic demand

B. (b) Perfectly inelastic demand

C. (c) Relatively elastic demand

D. (d) Relatively inelastic demand

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Answer: A. (a) Perfectly elastic demand

Answer: (a) Perfectly elastic demand

When demand is perfectly elastic (\(E_d = \infty\)), a negligible change in price causes an infinite change in demand, so the demand curve is a horizontal straight line parallel to the X-axis. A perfectly inelastic demand curve is parallel to the Y-axis.

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Complete the following statement : Demand curve is parallel to 'X' axis in case of ______.

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