The Case of Perfectly Elastic Demand Is Illustrated by a Demand

question 279

Multiple Choice

The case of perfectly elastic demand is illustrated by a demand curve that is

• A)vertical.
• B)horizontal.
• C)downward-sloping but relatively steep.
• D)downward-sloping but relatively flat.

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Definitions:

Total Asset Turnover

A financial ratio that measures the efficiency of a company in using its assets to generate sales revenue, calculated by dividing sales by total assets.

Inventory Turnover

A financial ratio indicating the number of times a company's inventory is sold and replaced over a period.

Debt Ratio

A financial ratio that measures the extent of a company’s or individual's leverage, calculated by dividing total liabilities by total assets.

Days' Sales in Inventory

A financial metric that calculates the average number of days a company takes to sell its inventory, indicating the efficiency of inventory management.