Figure 5-4 -Refer to Figure 5-4.The Section of the Demand Curve from Demand

question 52

Multiple Choice

Figure 5-4
-Refer to Figure 5-4.The section of the demand curve from B to C represents the

• A)elastic section of the demand curve.
• B)perfectly elastic section of the demand curve.
• C)unit elastic section of the demand curve.
• D)inelastic section of the demand curve.

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Definitions:

Noncumulative

Describes dividends on preferred stock that, if not paid in the year they are due, do not accumulate and are not required to be paid in later years.

Par Value

A terminology indicating the official value of a security as outlined in the document at the time of its issue.

Dividend

A distribution of earnings given by a company to its stockholders, typically from its profits.

Par Value

The face value of a bond or stock as stated by the issuing company, often the minimum amount the security can be sold for.