If Demand Is Perfectly Elastic, the Absolute Value of the Price

question 271

Multiple Choice

If demand is perfectly elastic, the absolute value of the price elasticity coefficient is

• A) infinity.
• B) zero.
• C) more than one.
• D) equal to the absolute value of the slope of the demand curve.

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Definitions:

Current Asset Turnover

A financial metric that measures how efficiently a company uses its current assets to generate revenue, revealing asset management effectiveness.

Interest Coverage

A financial ratio that measures a company's ability to meet its interest payments on outstanding debt.

Cash Flow From Operations

represents the net amount of cash generated by a company's normal business operations, excluding financing and investing activities.

Net Income

The total profit or loss of a company after all income and expenses, including taxes, have been accounted for.