If Demand Is Highly Inelastic and Supply Shifts to the Right

question 63

True/False

If demand is highly inelastic and supply shifts to the right, the equilibrium price will rise significantly while quantity will increase only slightly.

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Definitions:

Physical Count

The process of manually counting and verifying the amounts of inventory a company physically has in its possession.

Ownership

The legal right to possess, use, and control a tangible or intangible item.

Consignment

The process of placing goods in the possession of another party to sell, while retaining ownership until the goods are sold.

Consignee's Ending Inventory

The value of goods that are still on consignment at the end of an accounting period, not yet sold by the consignee.