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Why is the demand curve for a good very unlikely to be perfectly vertical?
Wiki User
∙ 10y ago
the demand curve for a good is very unlikely to be perfectly vertical because
Wiki User
∙ 10y ago
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Explain the difference between price elasticity of demand and the slope of a demand curve?
Price elasticity is a specific type of slope of the demand curve. A perfectly inelastic demand means that the quantity will not change with the price. This line is perfectly vertical. A perfectly elastic demand curve is horizontal and means that at any given quantity, there is only one price. Also, a slope gets steeper, demand becomes more inelastic.
The labor demand curve of a purely competitive seller perfectly elastic?
yes the demand curve is perfectly inelastic and horizontal
When does supply curve look like a demand curve?
When supply and demand are perfectly elastic/inelastic
What is the distinctive feature of the demand curve of a firm in pure competition?
The demand curve would be perfectly elastic.
A demand curve which is parallel to the vertical axis is?
When the demand curve is horizontal to the x axis, it is said to be elastic and therefore more responsive to changes in price. When the demand curve is vertical, it is more inelastic and consumers will be more apt to purchase a good regardless of the price.
Explain the difference between price elasticity of demand and the slope of a demand curve?
Price elasticity is a specific type of slope of the demand curve. A perfectly inelastic demand means that the quantity will not change with the price. This line is perfectly vertical. A perfectly elastic demand curve is horizontal and means that at any given quantity, there is only one price. Also, a slope gets steeper, demand becomes more inelastic.
A perfectly price- inelastic demand curve is A horizontal b downward sloping c upward sloping d vertical?
A perfectly price-inelastic demand curve is vertical (Parallel to Y-axix) because the percentage change in quantity demanded is nil whatever the percentage change happens in price.
The labor demand curve of a purely competitive seller perfectly elastic?
yes the demand curve is perfectly inelastic and horizontal
When does supply curve look like a demand curve?
When supply and demand are perfectly elastic/inelastic
What is the distinctive feature of the demand curve of a firm in pure competition?
The demand curve would be perfectly elastic.
What does the demand curve state?
As price (on the horizontal) increases, demand (on the vertical) will decrease.
A demand curve which is parallel to the vertical axis is?
When the demand curve is horizontal to the x axis, it is said to be elastic and therefore more responsive to changes in price. When the demand curve is vertical, it is more inelastic and consumers will be more apt to purchase a good regardless of the price.
What type of curve does the perfectly competitive firm face?
perfectly elastic demand function.
What is the demand curve for output of a perfectly competitive firm?
Demand = Price = Marginal Cost.
What is a perfectly inelastic supply curve?
A perfectly inelastic supply relation would be defined as one where the quantity produced remains static under any price change. If we'd plot this curve in the familiar demand-supply framework with price being on the y-axis and quantity on the x-axis, the curve would be vertical.
Why is the demand curve the same as the marginal revenue curve for a perfectly competitive firm?
Because for a perfectly competetive firm since the demand curve is perfectly elastic even a slightest price change doesnt add any further demand..so there is no change in marinal revenue also.Since revenue is demand multiplied with cost of unit..the two curves are same.
What happen to price when supply is constant and demand increaes?
prices will fall if demand decreases and the supply is constant. the supply curve will be vertical and demand curve will be downward sloping.
