If Demand Is Perfectly Elastic

question 4

Multiple Choice

If demand is perfectly elastic,

• A)The demand curve is vertical.
• B)The demand curve is very steep.
• C)The demand curve is horizontal.
• D)The demand curve has a zero slope.

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Definitions:

Share Capital

The amount of money raised by a company through the issuance of shares to its shareholders.

Corporate Form

A legal structure for organizing a business as a separate entity, recognized by law as having its own rights and liabilities.

Government Regulation

Rules established by authorities designed to control and direct the actions of individuals and organizations within a society.

Stock Dividends Distributable

Shares that have been declared as a dividend but have not yet been distributed to shareholders.