If the Quantity of Walkie-Talkies Supplied Increases by 5 Percent

question 249

Multiple Choice

If the quantity of walkie-talkies supplied increases by 5 percent when price increases by 12 percent, then

• A)the supply of walkie-talkies is inelastic.
• B)the supply of walkie-talkies is elastic.
• C)the walkie-talkie supply curve will shift to the right.
• D)the walkie-talkie supply curve will shift to the left.

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Definitions:

Supplies Account

The Supplies Account is a record that tracks the costs of consumable items used by a business in its operations, which may include office supplies, small tools, and cleaning products.

Assets

Resources owned or controlled by a business or individual, which are expected to provide future economic benefits.

Expenses

Costs incurred in the operation of a business; these are necessary for the company to generate revenues.

Financial Reports

Documents that provide an overview of a company's financial condition, including balance sheets, income statements, and cash flow statements, among others.