A substance is an element if it consists of a single type of atom. A substance is a compound if it is made up of more than one element.
Elements and compounds
In chemistry, an element is defined as all pure substances consisting of the same atom. For example, magnesium and potassium metal are all elements because they consist of magnesium and potassium atoms only.
On the other hand, compounds are defined as substances consisting of 2 or more atoms of different elements. For example, sodium chloride consists of atoms of sodium and chlorine. Hence, it is considered to be a compound.
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