The More Elastic That Supply and Demand Are in Any

question 23

True/False

The more elastic that supply and demand are in any market, the more taxes in that market distorts behaviour.

---

Definitions:

Salvage Value

The estimated value that an asset will realize upon its sale at the end of its useful life.

Net Cash Flows

The net amount of cash and cash equivalents moving into and out of a business within a specified period.

Payback Method

A capital budgeting technique that calculates the length of time required to recoup the initial investment cost through the net cash flows it generates.

Cash Flow

Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business.