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Abnormal demand curves can be vertical or horizontal due to specific market conditions. A vertical demand curve indicates perfectly inelastic demand, where quantity demanded remains constant regardless of price changes, often seen with essential goods with no substitutes. Conversely, a horizontal demand curve represents perfectly elastic demand, where consumers will only purchase at a specific price, common in highly competitive markets with many substitutes. These extreme cases highlight the varying responsiveness of consumers to price changes based on the nature of the product and market dynamics.
What else can I help you with?
A perfectly price- inelastic demand curve is A horizontal b downward sloping c upward sloping d vertical?
A perfectly price-inelastic demand curve is vertical (Parallel to Y-axix) because the percentage change in quantity demanded is nil whatever the percentage change happens in price.
What is horizontal summation?
Horizontal summation is a method used in economics and social sciences to aggregate individual preferences or demand curves into a collective or market-level curve. It involves adding together the quantities demanded by all consumers at each price level, thereby creating a total demand curve for the market. This approach is crucial for understanding how individual behaviors combine to influence overall market dynamics.
Does a demand curve always have a positive slope?
Demand curves almost always have negative slopes. The Y value being price and the X value being quantity. The higher the price, the more negative the slope. There are very rare conditions where a demand curve could have a positive slope, but its not normally used in business classes.
How can you tell which line is the supply line?
In a supply and demand graph, the supply line is typically upward sloping from left to right, indicating that as the price increases, the quantity supplied also increases. It represents the relationship between the price of a good and the quantity that producers are willing to sell. In contrast, the demand line slopes downward, showing that as prices decrease, the quantity demanded increases. To identify the supply line, look for the line that rises as you move along the horizontal axis.
Why price an independable variable and demand is dependent variable?
Because demand creates the price, and not the price dictates the demand.
What causes abnormal demand curve?
Prices falling can cause abnormal demand curve. Any kind of changes to the price, production, etc. can also cause abnormal curves in demand.
The horizontal sum of all individual demand curves is known as?
The MArket Demand Curve
What does a The horizontal summing of individual demand curves create?
blunt blow
What does the demand curve state?
As price (on the horizontal) increases, demand (on the vertical) will decrease.
Why do single firms in perfectly competitive markets face horizontal demand curves?
Gdbugufifudusks
In a graph of price vertical axis verses quantity horizontal demand is downward sloping because?
market demand
What term is used to describe a visual with vertical and horizontal lines plot supply and demand?
graph
What is the meaning of the term Demand Curve?
The demand curve means a graphcurve that normally slopes downward towards the right of thechart(except for aGiffen good, where it slopes toward the left), showingquantityof aproduct(good orservice) demanded at differentpricelevels. Customarily, the price is plotted on vertical ('Y') axis and quantity on the horizontal ('X') axis, and it is assumed that (in theshort run)incomelevels, price ofsubstitutes, andcustomerpreferences, remain unchanged. Demand curves of theindividualproductsare aggregated to give amarket demand curveand, when drawn together with thesupply curves, show theequilibrium priceat the intersection of the two curves. See link below.
What is a visual with vertical and horizontal lines to plot supply and demand?
Graph
A demand curve which is parallel to the vertical axis is?
When the demand curve is horizontal to the x axis, it is said to be elastic and therefore more responsive to changes in price. When the demand curve is vertical, it is more inelastic and consumers will be more apt to purchase a good regardless of the price.
Why demand curve slops downward from left to right?
The demand / supply graph is designed to have supply on the vertical axis (Y) and demand on the horizontal (X). Thus you will have a higher supply = lower demand, or lower supply = high demand.
Explain the difference between elasticity of demand and the slope of a demand curve?
The demand curve is drawn with price on the vertical axis and quantity demanded on the horizontal axis. Mathematically, the slope of a curve is represented by rise over run, or the change in the variable on the vertical axis divided by the change in the variable on the horizontal axis. Therefore, the slope of the demand curve represents change in price divided by change in quantity. Elasticity, on the other hand, aims to quantify the responsiveness of demand and supply to changes in price, income, or other determinants of demand.
