For which graph “Price elasticity” line will be parallel to x-axis?

Correct option is A

· In a perfectly elastic demand, any small change in price leads to infinite change in quantity demanded.
· The demand curve is horizontal, i.e., parallel to the x-axis.
· Ep = ∞ (infinite elasticity).
· Indicates:
· The product has perfect substitutes.
· Common in perfect competition scenarios.
· Example: A firm’s product in a perfectly competitive market.