When a Demand Curve Is Linear

question 46

Multiple Choice

When a demand curve is linear,

• A) the elasticity is the same as the slope of the demand curve.
• B) demand is elastic at high prices.
• C) demand is unitary elastic at low prices.
• D) the elasticity is constant at all prices.

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Definitions:

Operating Cash Receipts

The cash received by a company from its operational activities, such as cash from sales or services rendered.

Operating Cash Payments

Cash payments made by a business for its operational activities, such as paying for goods, services, and employee salaries.

Equity Securities

Financial instruments representing ownership interest in a corporation, such as stocks.