A Demand Curve Is Described as Perfectly Elastic If

question 121

Multiple Choice

A demand curve is described as perfectly elastic if

• A)any quantity can be sold at a given price.
• B)the same quantity is sold regardless of price.
• C)neither price nor quantity demanded ever change.
• D)only price can change.

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Definitions:

Option Agreement

A contract that grants the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a specified date.

Warrant

A financial instrument that gives the holder the right, but not the obligation, to buy shares of a company at a specific price before a certain date.

Arbitrage Opportunity

A situation where it's possible to simultaneously purchase and sell an asset or security and profit from the price difference.

Warrant

A financial instrument that confers the right to buy a security, typically a stock, at a specific price before a certain date.