As the demand curve gets flatter (more horizontal), demand becomes more price in
ID: 1189333 • Letter: A
Question
As the demand curve gets flatter (more horizontal),
demand becomes more price inelastic and the price elasticity of demand approaches zero.
demand becomes more price inelastic and the price elasticity of demand approaches negative infinity.
demand becomes more price elastic and the price elasticity of demand approaches negative infinity.
demand becomes more price elastic and the price elasticity of demand approaches zero.
a.demand becomes more price inelastic and the price elasticity of demand approaches zero.
b.demand becomes more price inelastic and the price elasticity of demand approaches negative infinity.
c.demand becomes more price elastic and the price elasticity of demand approaches negative infinity.
d.demand becomes more price elastic and the price elasticity of demand approaches zero.
Explanation / Answer
As the demand curve gets more and more flatter horizontally, the sensitivity of change in price over quantity demand increases. Demand curve shows negative relationship between quantity demanded and supply therefore, price elasticity of demand is a negative value.
Therefore As the curve gets more flat, the elasticity approached to negative infinity. Hence, option C is correct.
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