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Look at the demand curve of a good which is a straight line sloping downward. State whether the elasticity of demand is zero when the price is zero.

  

Asked by Topperlearning User 25th April 2016, 9:33 AM
Answered by Expert
Answer:

Price is equal to zero at point B.

Ed at point B = 0/AB = 0

Therefore, elasticity of demand is equal to zero, when price = 0.

Answered by Expert 25th April 2016, 11:33 AM
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