NARRBEGIN: Exhibit 5-18 Exhibit 5-18

question 81

Multiple Choice

NARRBEGIN: Exhibit 5-18
Exhibit 5-18

-The curve shown in Exhibit 5-18 could represent

• A) perfectly elastic demand or supply
• B) perfectly inelastic supply or perfectly elastic demand
• C) perfectly elastic supply or perfectly inelastic demand
• D) perfectly inelastic supply or demand
• E) perfectly inelastic supply or demand which is unit elastic

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Definitions:

Cost Savings

Reductions in expenditures achieved through methods such as negotiation, effciency improvements, or substitution.

Pretax Return

The profit earned by a business before the deduction of tax expenses.

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Net Present Value

A calculation that determines the present value of a series of future cash flows, minus the initial investment, used to assess the profitability of investments.