If the Quantity of a Good Supplied Is Highly Sensitive

question 351

Multiple Choice

If the quantity of a good supplied is highly sensitive to the price of the good, economists say the supply of the good is relatively

• A) inelastic.
• B) elastic.
• C) robust.
• D) inverse.

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Definitions:

Break-Even Level

The point at which total costs and total revenue are equal, resulting in no net loss or gain from business activities.

EBIT

Stands for Earnings Before Interest and Taxes, an indicator of a company's profitability excluding interest and tax expenses.

Bankruptcy Proceedings

A legal process through which individuals or businesses unable to meet their financial obligations can seek relief from some or all of their debts.