Answer:
Price (Rs.) Quantity (units) Total Expenditure (Rs.) 10 10 100 10 20 200 P = Rs. 10, \[{{P}_{1}}\]= Rs. 10, Q = 10, \[{{Q}_{1}}\]= 20 \[\Delta P=10-10=0,\,\,\,\,\,\,\,\Delta Q=20-10=10\] \[{{E}_{d}}=\frac{\Delta Q}{\Delta P}\,\,\times \,\,\frac{P}{Q}\,\,=\,\,\frac{10}{0}\,\,\times \,\,\frac{10}{10}=\infty \,\,(\text{Infinity})\] Since the price remains the same the shape of demand curve will be perfectly elastic. Demand Curve will be parallel to x-axis.
You need to login to perform this action.
You will be redirected in
3 sec