A Perfectly Elastic Demand Curve for a Firm

question 39

Multiple Choice

A perfectly elastic demand curve for a firm

• A)is represented by a vertical line.
• B)means that with every unit price increase there will be a unit decrease in demand.
• C)is formulated by P * Q = a constant, for all prices and quantities.
• D)indicates that any increase in price will eliminate all purchases of its product.

---

Definitions:

Outstanding Checks

Checks that have been written and recorded in the checking account ledger but have not yet been cashed or cleared by the bank.

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those shown on a bank statement to ensure consistency and accuracy of the figures.

NSF Check

A check that has been refused by the bank due to insufficient funds in the account it was drawn against.

Bank Service Charge

Fees charged by a bank for account services, such as account maintenance, transactions, and other banking services.