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

question 96

Multiple Choice

Figure 5-4
-Refer to Figure 5-4.The section of the demand curve at point B represents the

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

---

Definitions:

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.

Gross Investment

The total amount of money spent on capital goods, or assets that will provide productive capacity for the future, without deducting for depreciation.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting the decrease in value over time.

Capital Stock

The total value of all physical assets owned by a company that are used in producing goods and services.