When a Given Percentage Change in the Price Leads to a Larger

question 138

Multiple Choice

When a given percentage change in the price leads to a larger percentage change in the quantity supplied, supply is said to be

• A)elastic.
• B)unit elastic.
• C)inelastic.
• D)infinitely elastic.
• E)perfectly inelastic.

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Definitions:

Equitable Obligation

An obligation based on fairness, ethics, or natural law, rather than on a contractual or legal requirement.

Present Obligation

An obligation that arises from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.

Contingent Liability

A potential financial obligation that may arise in the future, depending on the outcome of a specific event.

Liabilities

Financial obligations or debts that an entity owes to others, which must be settled in the future through the transfer of assets or services.