[amp_mcq option1=”perfectly elastic demand curve” option2=”perfectly inelastic demand curve” option3=”perfectly elastic supply curve” option4=”perfectly inelastic supply curve” correct=”option1″]<\/p>\n
The correct answer is A. perfectly elastic demand curve.<\/p>\n
A perfectly elastic demand curve is a horizontal line that indicates that the quantity demanded of a good will change infinitely in response to even a small change in price. This is because in perfect competition, there are many firms selling identical products, so each firm has no control over the price of its product. If a firm raises its price, it will lose all of its customers to other firms that are selling the same product at a lower price. Conversely, if a firm lowers its price, it will attract customers from other firms that are selling the same product at a higher price.<\/p>\n
A perfectly inelastic demand curve is a vertical line that indicates that the quantity demanded of a good will not change at all in response to a change in price. This is because the good is a necessity, and consumers will buy the same amount of it regardless of the price.<\/p>\n
A perfectly elastic supply curve is a horizontal line that indicates that firms will supply any quantity of a good at a given price. This is because in perfect competition, firms have no costs of production, so they are willing to supply any quantity of the good at the market price.<\/p>\n
A perfectly inelastic supply curve is a vertical line that indicates that firms will supply a fixed quantity of a good regardless of the price. This is because the good is a scarce resource, and firms cannot produce more of it even if the price is higher.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”perfectly elastic demand curve” option2=”perfectly inelastic demand curve” option3=”perfectly elastic supply curve” option4=”perfectly inelastic supply curve” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-49597","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n