For a Horizontal Demand Curve

question 165

Multiple Choice

For a horizontal demand curve,

• A)the slope is undefined,and the price elasticity of demand is equal to 0.
• B)the slope is equal to 0,and the price elasticity of demand is undefined.
• C)both the slope and price elasticity of demand are undefined.
• D)both the slope and price elasticity of demand are equal to 0.

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Definitions:

Tax Bracket

Categories that determine the rate at which income is taxed, based on the amount of taxable income.

Capital Cost Allowance (CCA)

A tax deduction in Canada for depreciable property expense, used to decrease taxable income.

Salvage Value

The anticipated market value of an asset once it reaches the end of its operational lifespan.

Discount Rate

The interest rate used to discount future cash flows to their present value, often used in capital budgeting and investment valuation.