If the Price Elasticity of Supply Is 1

question 85

Multiple Choice

If the price elasticity of supply is 1.2,and price increased by 5%,quantity supplied would

• A)increase by 4.2%.
• B)increase by 6%.
• C)decrease by 4.2%.
• D)decrease by 6%.

---

Definitions:

Operating Activities

Business activities directly related to producing and delivering goods and services, affecting a company's cash flow.

Cash Flows

The overall volume of cash inflows and outflows within a corporation, significantly affecting its liquid assets.

Operating Activities

The day-to-day actions that are involved in running a business, such as buying, selling, and producing goods or services.

Indirect Method

A way of preparing the statement of cash flows where net income is adjusted for changes in balance sheet accounts to calculate the cash from operating activities.