A Line That Is Perfectly Elastic Has an Elasticity of Demand

question 125

True/False

A line that is perfectly elastic has an elasticity of demand of zero.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from the total revenue.

Common Stock

Represents equity ownership in a corporation, with holders possibly entitled to vote on corporate policy and receive dividends.

Dividends

Payments made by a corporation to its shareholder members, distributed from the company's profits.

Expenses

Costs incurred in the operation of a business which may include costs such as rent, utilities, payroll, and materials.