If Supply Is Inelastic, It Follows That

question 195

Multiple Choice

If supply is inelastic, it follows that

• A)a rise in price will not change quantity supplied.
• B)a fall in price will not change quantity supplied.
• C)consumers will pay 100 percent of any tax placed on sellers.
• D)quantity supplied always changes more than price changes.
• E)none of the above

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Definitions:

Balance Sheet

A financial statement that presents a company's financial position at a specific point in time, showing assets, liabilities, and shareholders' equity.

Income Statement

A financial statement that shows a company's revenue, expenses, and profit over a particular period, providing insight into its financial performance.

Fixed Costs

Fixed Costs are expenses that do not change with the level of production or sales, such as rent or salaries.

Volume of Activity

A measure of the quantity of work performed or the level of operations, often used to allocate overhead costs in activity-based costing.