On a Linear Demand Curve That Intersects Both Axes

question 201

Multiple Choice

On a linear demand curve that intersects both axes

• A) the elasticity exceeds 1.00 at all prices.
• B) the elasticity is less than 1.00 at all prices.
• C) the elasticity equals 1.00 at all prices.
• D) the elasticity decreases as the price falls and quantity increases.

---

Definitions:

Variable Costs

Costs that change in proportion to the amount of goods produced or the volume of sales.

Cost Classification

Cost Classification involves categorizing costs based on their characteristics, such as fixed vs variable costs, to facilitate financial analysis and management.

Mixed

In finance, this term could refer to an investment portfolio comprising various types of assets, aimed at diversifying risk.

Multiple

A financial metric used to compare a company's market value to its earnings, sales, or other financial measures, often indicating how much investors are willing to pay per dollar of earnings or assets.