For Each of the Following Goods Would You Expect the Supply

question 172

Essay

For each of the following goods would you expect the supply to be elastic or inelastic? Provide explanation for each of your rationales.
a. oil
b. toothpicks
c. Picasso paintings.

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Definitions:

Working Capital

An indicator of a company's short-term financial health, calculated as current assets minus current liabilities.

Quick Ratio

A liquidity measure that indicates a company's ability to pay its short-term liabilities with its most liquid assets, excluding inventory.

Current Ratio

Current Ratio is a liquidity ratio that measures a company’s ability to pay short-term obligations or those due within one year, calculated by dividing current assets by current liabilities.

Contingent Liabilities

Potential liabilities that may or may not become actual liabilities, depending on the outcome of uncertain future events.