A Linear Supply Curve That Has a Positive Vertical Intercept,e

question 79

Multiple Choice

A linear supply curve that has a positive vertical intercept,e.g. ,P = a + bQ,will always have a price elasticity of supply equal to

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

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Definitions:

Operating Cycle

The average period of time it takes for a business to convert its inventory into cash through sales.

Twelve Months

A term commonly used in finance and business to refer to a full fiscal or calendar year.

Long-Term Debt

Debt obligations due for repayment in more than one year, often used for significant business investments.

Issue Date

The date on which a security (like a bond or stock) is issued or made available for sale.