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- Subject
- Economics Mcqseconomics-mcqs
- Published
- 19 Jul 2020
- Last updated
- 28 May 2026
If the price consumption curve is a horizontal line along the x-axis, what will be the elasticity of demand?
Multiple choice question for Economics Mcqs. Select an option, then review the explanation below.
Explanation
When the price consumption curve is horizontal on the x-axis, it indicates that the quantity demanded changes proportionally with price, resulting in a unitary elasticity of demand, which is equal to 1.
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Practice related questions from the same subject.
- 1.According to the World Bank, countries are grouped into four categories based on which of the following criteria?
- 2.Automatic stabilizers belong to which category of economic policy tools?
- 3.What is the likely effect of an increase in the money supply?
- 4.Which economic concept illustrates the inverse connection between inflation and unemployment?
- 5.Which of the following does not constitute a part of the Gross Domestic Product (GDP)?