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At a point where a straight line demand curve meets the price axis (Y-axis), the elasticity of demand is:

A. Equal to one

B. Less than one

C. Equal to zero

D. Equal to infinite

Correct Answer : D.


At the point on demand curve where it meets the Y-axis, the upper segment of demand curve is zero and lower segment is some geometrical value .So elasticity of demand Ed = Lower segment /Upper segment, the answer will be infinite)

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