Which of the Following Statements Is FALSE

question 322

Multiple Choice

Which of the following statements is FALSE?

• A) A good with a vertical demand curve has a perfectly inelastic demand.
• B) A good with a straight line, downward sloping demand curve has a demand whose elasticity is constant.
• C) A good with a horizontal demand curve has a perfectly elastic demand.
• D) All of the above statements are false.

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Definitions:

Interest Costs

Interest costs refer to the expenses incurred by borrowing funds, represented as the cost of the interest payments on debt.

Retained Earnings

The portion of a company's profit that is held back and not distributed to shareholders as dividends, used for investment or paying off debt.

Straight-Line Depreciation

A depreciation technique that allocates an equal amount of depreciation each year over the asset's useful life.