If the Slope of a Demand Curve Is Infinite, Then

question 78

Multiple Choice

If the slope of a demand curve is infinite, then the price elasticity of demand is:

• A)zero.
• B)infinite.
• C)one.
• D)equal to the price of the good.

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Definitions:

Average Days

Average days, often related to accounts receivable and payable, refers to the average number of days it takes a company to collect payments from customers or the time it takes to pay suppliers.

Liquidity Ratios

Financial metrics used to assess a firm's ability to meet its short-term obligations, with common examples including the current ratio and quick ratio.

Profitability Ratios

Ratios that compare income with one or more primary activities.