In the Case of Perfectly Elastic Supply, the Supply Curve

question 231

Multiple Choice

In the case of perfectly elastic supply, the supply curve is

• A) upward sloping.
• B) downward sloping.
• C) vertical.
• D) horizontal.

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Definitions:

Financial Accounting

The field of accounting that focuses on recording, summarizing, and reporting the myriad of transactions resulting from business operations over a period of time.

Goodwill

An intangible asset that represents the excess value of a purchased company over the fair value of its identifiable net assets.

Amortize

The gradual reduction of a debt over a period of time through regular payments of principal and interest sufficient to pay off the debt by maturity.

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the United States to guide the recording and reporting of financial information.