For a Horizontal Demand Curve

question 165

Multiple Choice

For a horizontal demand curve,

• A)the slope is undefined,and the price elasticity of demand is equal to 0.
• B)the slope is equal to 0,and the price elasticity of demand is undefined.
• C)both the slope and price elasticity of demand are undefined.
• D)both the slope and price elasticity of demand are equal to 0.

---

Definitions:

Double Taxation

The imposition of taxes on the same income, asset, or financial transaction at two different levels of government, often seen in the taxation of corporate profits and then again when dividends are paid to shareholders.

Limited Liability

An advantage of the corporate form. Stockholder liability for the actions of a company is limited to the value of the stock. That is, a suit against the corporation cannot be made against a stockholder simply because the stockholder is an owner.

Proprietorships

A type of business entity that is owned and operated by a single individual, without any legal distinction between the owner and the business.

Sole Proprietor

An individual who owns and operates a business alone, bearing unlimited liability for the business's debts and obligations.