A ________ Curve Means That ________

question 13

Multiple Choice

A ________ curve means that ________.

• A) horizontal demand; a change in price does not change total revenue
• B) horizontal demand; the elasticity of demand is less than 1
• C) horizontal supply; the elasticity of supply is infinite
• D) horizontal supply; the elasticity of demand is infinite
• E) vertical demand; a change in price does not change total revenue

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Definitions:

Percent of Sales Method

A financial planning tool used to forecast future revenues, expenses, or balance sheet figures as a percentage of sales.

Uncollectible Accounts Receivable

Accounts receivable that are considered to be uncollectible due to the inability of the customers to pay.

Journal Entries

Recorded transactions in the accounting system, documenting financial changes in accounts.

Percent of Sales

Percent of sales is a financial analysis tool that helps in estimating how certain accounts, like revenue and expenses, will vary in proportion to changes in sales.