Asked by
Abdulaziz AlOhali
on Oct 12, 2024
Verified
Statement I: A perfectly inelastic demand curve and a perfectly elastic supply curve are represented the same way on a graph.
Statement II: A perfectly elastic demand curve and a perfectly elastic supply curve are represented the same way on a graph.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Perfectly Inelastic Demand
A situation in which the demand for a product does not change as the price changes.
Perfectly Elastic Supply
describes a market situation where the quantity supplied can change infinitely in response to any change in price.
Elastic Demand
A situation where the demand for a product significantly changes in response to changes in the product's price.
- Appreciate the graphical illustration of supply and demand curves under distinct elasticity conditions.
- Gain an understanding of the economic ideas pertaining to perfectly elastic and perfectly inelastic demand and supply.
Verified Answer
AM
Learning Objectives
- Appreciate the graphical illustration of supply and demand curves under distinct elasticity conditions.
- Gain an understanding of the economic ideas pertaining to perfectly elastic and perfectly inelastic demand and supply.