Statement I: a Perfectly Inelastic Demand Curve and a Perfectly

question 14

Multiple Choice

Statement I: A perfectly inelastic demand curve and a perfectly elastic supply curve are represented the same way on a graph.
Statement II: A perfectly elastic demand curve and a perfectly elastic supply curve are represented the same way on a graph.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Present Values

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in discounting to address the time value of money.

Annuities

An investment product sold by financial institutions that pays out a fixed stream of payments to the individual, and is often used as an income stream for retirees.

Compute

To calculate or determine by mathematical means.

Compounded Semiannually

Refers to the process of calculating interest on both the initial principal and the accumulated interest over two periods within a year.