--%>
Assignment Help - homework help

Explain the infinitely elastic demand

Explain the infinitely elastic demand.

E

Expert

Verified

Perfectly elastic demand also called infinitely elastic:

While a small change in price leads to infinite change in quantity demanded, this is termed as perfectly elastic demand. But the demand curve is a horizontal straight line as specified below. Where ep= ∞ (infinity)

1950_Perfectly elastic demand.png

   Related Questions in Managerial Economics

  • Q : Wage Rates and Marginal Resource Costs

    When all markets wherein a firm operates are purely competitive, in equilibrium the marginal resource cost of labor is the same to the: (w) firm’s marginal revenue. (x) marginal cost of output. (y) wage rate the firm must pay to hire more worker

    		•
  • Q : Wage rate and labor in supplying By the

    By the following choices in this illustrated graph, this worker would be happiest at point: (w) point a. (x) point b. (y) point c. (z) point d.

    Q : Illustrates the major objectives of

    Illustrates the major objectives of demand analysis?

    		•
  • Q : Objectives and importance of managerial

    What are the objectives and importance (Uses) of managerial Economics?

    		•
  • Q : Explain the Price Elasticity of Demand

    Explain the Price Elasticity of Demand.

    		•
  • Q : Increases in labor force participation

    When this purely competitive labor market is primarily in equilibrium at D0L, S0L, a move to equilibrium at D0L, S1L would be probably to follow from increases in: (w) rates of technological advance. (x) the cost of living. (y) labor force participati

    		•
  • Q : Illustrates the case of customary

    Illustrates the case of customary pricing with details?

    		•
  • Q : Occurrence of General Training General

    General training occurs while a: (w) secretary learns a new office procedure. (x) handyman learns to drive a semi-truck. (y) messenger learns the company’s in-house mail route. (z) navy recruit learns how to repair a guided missile.

  • Q : Wage payments by total production cost

    Wage payments like a proportion of total production cost are positively associated to the: (1) ease of substitution between capital and labor. (2) wage elasticity of demand for labor. (3) extent of automation in the industry. (4) human capital created

    		•
  • Q : Higher rates of unemployment Higher

    Higher rates of unemployment in between nurses, clerical workers and teachers are a likely consequence when a government policy is adopted based on the doctrine of: (1) comparable worth. (2) equal marginal productivity per dollar. (3) equal pay for eq

    		•