Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P x . Assume that P = $8, I = 200, and P x = $10.
-A perfectly elastic demand curve is represented by a vertical line.

Question

Quizplus · Accepted Answer

A perfectly elastic demand curve is represented by a horizontal line, not a vertical line. A vertical line represents a perfectly inelastic demand, where the quantity demanded does not change with a change in price.

Scenario 5.1 The Demand for Noodles Is Given by the Following Equation