A Perfectly Elastic Demand Curve Has a Price Elasticity of Demand

question 11

Multiple Choice

A perfectly elastic demand curve has a price elasticity of demand coefficient of:

• A) zero.
• B) 1.
• C) greater than 1, but less than infinity.
• D) less than 1, but greater than zero.
• E) infinity.

---

Definitions:

Salary Allowance

Salary allowance is a fixed amount of money paid to employees in addition to their regular salary, often to cover specific work-related expenses.

Average Capital Investment

The mean amount of money that has been invested in the assets of a company over a specific period.

Partners' Capital Statement

A financial statement that shows the changes in the equity of partners in a partnership over a period of time.

Capital Account

A financial statement that shows the changes in ownership interest in a company over a period.