--%>
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 : Substantial general training to certain

    When a firm gives substantial general training to specific workers: (i) it is probable to pay them a premium wage to cut labor turnover. (ii) the workers are likely to receive less pay than their VMPs after such training. (iii) the workers are most pr

    		•
  • Q : Labor and Revenue in Purely Competitive

    Short run total revenue of the purely competitive firm would be at a maximum along with: (1) 600 workers. (2) 700 workers. (3) 800 workers. (4) 900 workers (5) 1000 workers.

    Q : Credentialism and Occupational Licensing

    Occupational licensing often requires qualifications with small relevance for performance in a specific position before an individual can legally be hired. Artificial and inefficient barriers to the practice of specific occupations, such as dog groome

    		•
  • Q : Competitive Market Supplies of Labor

    The supply curve of labor which confronts a large but purely competitive industry is usually: (1) horizontal. (2) positively sloped. (3) backward bending. (4) vertical. (5) negatively sloped. Can a

    		•
  • Q : Wage rate at demand of labor When the

    When the wage rate price of $13, in that case this firm would hire slightly fewer than: (i) 600 workers. (ii) 700 workers. (iii) 800 workers. (iv) 900 workers (v) 1000 workers.

    Q : Marginal resource cost of labor By

    By lying off three workers, total costs of a firm fall by $210 per day, indicating that the marginal: (w) revenue product of labor is $210. (x) revenue product of labor is $70. (y) resource cost of labor is $210. (z) resource cost of labor is $70.

    		•
  • Q : Explain the modern definition of

    Explain the modern definition of economics?

    		•
  • Q : Investment in Human Capital An

    An investment in human capital is most obviously illustrated while: (1) Biff Biceps lifts weights before going to the beach to surf. (2) Cary Coffee drinks four cups of latte before going to work. (3) Pollyanna reads Harlequin Romance novels within he

    		•
  • Q : Explain about econometric models

    Explain about econometric models.

    		•
  • Q : Explain the Economies of Scale Explain

    Explain the Economies of Scale.

    		•