A horizontal straight line demand curve shows zero elasticity of … - Vidyadip

Question

A horizontal straight line demand curve shows zero elasticity of demand.

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Answer

False. A horizontal straight line demand curve parallel to $X-$axis shows infinite elasticity of demand $(E_d = \infty )$. Because, slope of a horizontal straight line $= 0.$
So that, $E_d=\frac{1}{\text { Slope of demand curve }} \times \frac{P}{Q}$
$=\frac{1}{0} \times \frac{P}{Q}=\infty$

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