If the Price Elasticity of Supply Is 0

question 257

Multiple Choice

If the price elasticity of supply is 0.2,and a price increase led to a 3% increase in quantity supplied,then the price increase is about

• A) 0.07%.
• B) 0.60%.
• C) 6%.
• D) 15%.

Understand how changes in owners' equity reflect on the firm's financial status.

Describe the operating capability and how it affects a company's performance.

Identify and classify current liabilities on a balance sheet.

Differentiate between short-term investments and long-term investments.

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Definitions:

Long-Run Average Total Cost

The cost per unit of output incurred when all factors of production are variable, and scale of production can be changed.

Output

The amount of products or services produced by a company, industry, or economic system.

Total Fixed Cost

The sum of all costs that do not change with output level, including rent, salaries, and insurance.

Short Run

A period in economic analysis during which at least one input, such as plant size or capital, is fixed, limiting the ability to adjust to demand changes.