What will be the elasticity of demand when demand curve is parallel to y axis nb...........

Economics (CUET) Consumer Behaviour and Demand

What will be the elasticity of demand when demand curve is parallel to y axis?

Unity

zero

less than Unity

more than Unity

- Option 1: Unity

- Elasticity is 1.

- Demand changes by the same percentage as price.

- Option 2: Zero

- Elasticity is 0.

- Quantity demanded does not change regardless of price changes.

- Occurs when the demand curve is vertical, parallel to the Y-axis.

- Correct Answer: The demand is perfectly inelastic.

- Option 3: Less than Unity

- Elasticity is between 0 and 1.

- Quantity demanded changes by a smaller percentage than the price change.

- Option 4: More than Unity

- Elasticity is greater than 1.

- Quantity demanded changes by a larger percentage than the price change.

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