Consider a demand curve which takes the form of a straight line cutting both axes. Elasticity at the mid-point of the line would be:

Related MCQs

• A demand curve which takes the form of horizontal line parallel to quantity axis illustrates elasticity which is:
• Exceptional Demand Curve (Perverse demand curve)
• In the case of perfect elasticity, the demand curve is
• The horizontal demand curve for a commodity shows that its demand is:
• In the case of unitary elastic demand, the shape of demand curve is
• Demand for tyres depends on demand of vehicles, the demand for tyres called as
• If the income elasticity of demand is that one, the good is a
• The income elasticity of demand is negative for a
• The elasticity of demand for a product will be higher:
• Cross elasticity of demand between tea and sugar is: