Why is the demand curve? Does this produce horizontal?

Economics Dec 12, 2020

Expert Solution

The demand curve is usually downward sloping because of the law of demand. A demand curve can be horizontal in shape (parallel to the x-axis) if the demand is perfectly elastic which means that a small change in price leads to an infinite change in quantity demanded. Similarly, a demand curve can be vertical in shape (parallel to the y-axis) as well if the demand is perfectly inelastic which means that the consumer will buy same quantity irrespective of the price of the product.

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