When a Supply Curve

question 118

Multiple Choice

When a supply curve

• A)intersects the origin,the good has an elasticity of supply equal to 1.
• B)is vertical,the good has an elasticity of supply equal to infinity.
• C)is horizontal,the good has an elasticity of supply equal to zero.
• D)intersects the origin,the good has an elasticity of supply equal to zero.
• E)intersects the origin,the good has an elasticity of supply that is negative.

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Definitions:

Accounts Payable

Money owed by a business to its suppliers shown as a liability on the company's balance sheet.

Prepaid Expense

Payments made in advance for goods or services to be received in the future, recorded as an asset on the balance sheet until the expense is incurred.

Interest Revenue

Income earned from the lending of money or from investments in interest-bearing accounts.

Account Payable

An amount owed by an entity to a creditor for goods and services purchased on credit; considered a short-term liability.