What Best Describes the Direction of a Perfectly Elastic Demand

question 51

Multiple Choice

What best describes the direction of a perfectly elastic demand curve

• A)vertical
• B)horizontal
• C)downward sloping to the right
• D)upward sloping to the right

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Definitions:

Owner's Equity

The residual interest in the assets of a company after deducting liabilities, representing the ownership value in the company.

Owner's Drawings

The amount of money taken out of a business by its owner for personal use.

Revenues

Revenues are the total amounts of money earned by a company from its business activities, before any expenses are deducted.

Expenses

Costs incurred in the process of generating revenue, including operating costs, utilities, and salaries.