A Linear Supply Curve That Passes Through the Origin,e

question 158

Multiple Choice

A linear supply curve that passes through the origin,e.g. ,P = bQ,will always have a price elasticity equal to

• A) 1.
• B) some positive constant.
• C) -1.
• D) 1/slope.
• E) 0.

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Definitions:

Allowance Method

An accounting technique used to estimate uncollectible accounts receivable and record them as an expense.

Bad Debts

Money owed to a company that is considered irrecoverable and is written off as a loss.

Outstanding Balances

The total amount of money owed that has not yet been paid.

Credit Card

A plastic card issued by a bank allowing the cardholder to borrow funds at the point of sale, which are to be repaid with interest.