Consider the Following Three Diagrams: (A)Which of the Diagrams

question 85

Essay

Consider the following three diagrams: (a)Which of the diagrams above demonstrates a unit elastic supply curve? How can you tell?
(b)Which of the diagrams above demonstrates an inelastic supply curve? How can you tell?

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Definitions:

Retention Ratio

The retention ratio is a financial metric that measures the proportion of a company's earnings that are not distributed as dividends to shareholders but are instead reinvested in the business.

Debt-equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by its shareholder's equity.

Growth Rate

Growth rate refers to the percentage increase in the size or value of something over a specific period.

Retains Earnings

Profits that a company chooses to re-invest in the business rather than distribute to shareholders.