Which Statement Is Most Likely True About the Demand Curve

question 74

Multiple Choice

Which statement is most likely true about the demand curve in the graph?

• A)Point R is unit elastic,while point S is very inelastic.
• B)Point T is very inelastic,while point Q is very elastic.
• C)Point Q is very inelastic,while point T is very elastic.
• D)Point Q is slightly elastic,while point S is very inelastic.

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Definitions:

Capital Spending

Expenditures by a company for physical assets such as property, industrial buildings, or equipment, intended to improve its long-term capacity or efficiency.

Salvage Value

An asset's expected market price at the conclusion of its effective life.

Incremental Cash Flow

Consists of the additional operating cash flow an organization receives from taking on a new project.

Net Working Capital

The gap between what a business owns as current assets and what it owes in current liabilities, revealing the liquid funds available for operational purposes.