If a 30 Percent Change in Price Causes a 15

question 25

Multiple Choice

If a 30 percent change in price causes a 15 percent change in quantity supplied,then the price elasticity of supply is about

• A)0.5,and supply is elastic.
• B)0.5,and supply is inelastic.
• C)2,and supply is inelastic.
• D)2,and supply is elastic.

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Definitions:

Governmental Fund

A type of fund used by governmental entities to account for revenues, expenditures, and balances that are not accounted for in proprietary or fiduciary funds.

Bonds Payable

A liability account that represents the amounts owed by an entity to bondholders that must be repaid at a future date.

Governmental Fund Financial Statements

These are financial statements that report on the fiscal condition and the results of operations for governmental funds of a state, municipality, or similar entity.