Download App

Theory of consumer behaviour — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsTheory of consumer behaviour3 Marks
Question
Why is perfectly elastic demand curve parallel to X-axis?
✓

Answer

Perfectly elastic demand curve is parallel to X-axis because as a result of slight change in a price, there is infinite change in the quantity demanded.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "3 Marks Question" from Theory of consumer behaviour→Theory of consumer behaviour — all question types→Economics STD 11 Commerce question papers→CBSE Board STD 11 Commerce question papers→CBSE Board question paper generator→

Similar questions

How own Price Elasticity of Demand is different from Income Elasticity of Demand?
→
What is a budget line? Explain why is it a straight line?
→
Goods, he finds that the ratio of marginal utility to price in case of X is higher than that in case of Y. Explain the reaction of the consumer.
OR
A consumer consumes only two goods X and Y and is in equilibrium. Price of X falls. Explain the reaction of the consumer through the Utility Analysis.

OR
A consumer consumes only two goods X and Y and is in equilibrium. Price of good X falls. Show that it will lead to rise in demand for good X.

OR
By spending his entire income only on two goods X and Y a consumer finds that, finds that $\frac{\text{MU}_\text{x}}{\text{P}_\text{x}}>\frac{\text{MU}_\text{y}}{\text{P}_\text{y}}$Explain how will the consumer react.

OR
A consumer consumes two goods X and Y. what will happen if $\frac{\text{MU}_\text{x}}{\text{P}_\text{x}}$ is greater than $\frac{\text{MU}_\text{y}}{\text{P}_\text{y}}$?

OR
A consumer consumes two goods X and Y. Explain what will happen if $\frac{\text{MUX}}{\text{PX}}$ is greater than $\frac{\text{MUy}}{\text{Py}}$?
→
Explain the significance of the feature 'product differentiation' in monopolistic competition.
→
'Normal goods and inferior goods are relative terms'. Explain.
→
Consider the demand for a good. At price Rs $4$, the demand for the good is $25$ units. Suppose price of the good increases to Rs $5$, and as a result, the demand for the good falls to $20$ units. Calculate the price elasticity.
→
Draw Average Revenue and Marginal Revenue curves under monopolistic competition.
→
The price of a commodity is ₹ 20 per unit and total expenditure on it is ₹ 1,000. When its price falls to ₹ 18 per unit, total expenditure increases by 8 percent. Calculate its price elasticity of demand by percentage method.
→
There are large number of buyers in a perfectly competitive market. Explain the significance of this feature.
→
What is meant by normal goods in economics?
→