If the Quantity Supplied Responds Only Slightly to Changes in Price,then

question 31

Multiple Choice

If the quantity supplied responds only slightly to changes in price,then

• A)supply is said to be elastic.
• B)supply is said to be inelastic.
• C)an increase in price will not shift the supply curve very much.
• D)even a large decrease in demand will change the equilibrium price only slightly.

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Definitions:

Equity Method

An accounting technique used to record investments in other companies when the investing company has significant influence but does not control the investee.

Total Excess Amortization

Refers to the amount of amortization that exceeds the net carrying value of the intangible asset being amortized.

Fair-Value Allocations

The process of assigning fair values to different assets and liabilities when a company is acquired, as part of the purchase price allocation.

Net Income

The net income a business earns following the deduction of all costs and taxes from its gross revenue.