When Demand Is Perfectly Elastic

question 78

Multiple Choice

When demand is perfectly elastic:

• A) the demand curve is perfectly vertical.
• B) the demand curve is perfectly horizontal.
• C) price elasticity is exactly −1.
• D) the response to a change in price is immediate.

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Definitions:

Financial Condition

The status of a company's finances, including its assets, liabilities, and equity, indicative of its ability to meet financial obligations.

Future Performance

Predictions or expectations regarding a company or investment's actions, achievements, or financial results in upcoming periods.

Risk

The potential for losing something of value, weighed against the potential to gain something of value, often considered in financial investments and business ventures.

Current Financial Position

An individual's or entity's financial status at a particular point in time, considering assets, liabilities, and net worth.