A Demand Curve That Is Horizontal and in Which a Zero

question 31

Multiple Choice

A demand curve that is horizontal and in which a zero quantity will be sold at any price above a given price p while, at price p, any quantity can be sold is called a(n)

• A) unitary elastic demand curve
• B) perfectly elastic demand curve
• C) perfectly inelastic demand curve

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Definitions:

General Ledger

A thorough collection of financial records that documents every financial transaction undertaken by a business.

Adjustments Credit Column

The part of a financial or accounting document where adjustments are made to credits, increasing the value of certain accounts.

Merchandise Inventory

The inventory of products that a retailer plans to sell to customers, accounting for a critical component of its current assets.

Income Summary Account

An account used during the closing process in accounting that summarizes the revenues and expenses of a period to calculate the net income or loss.