If Price Elasticity of Supply Is Greater Than 1, It

question 14

Multiple Choice

If price elasticity of supply is greater than 1, it means that the percentage change in quantity supplied is

• A)less than the percentage change in price.
• B)greater than the absolute change in price.
• C)greater than the percentage change in price.
• D)equal to the absolute change in price.

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Definitions:

Debits

Accounting entries that increase assets or expenses or decrease liabilities, equity, or net worth in a company's balance sheet.

Credits

Credits refer to the accounting entries that can decrease assets or increase liabilities and equity on a company's balance sheet, opposite to debits.

Transactions

Financial events that affect the assets, liabilities, or equity of a company and can be measured in monetary terms.

Journal

A record where all financial transactions are entered initially, before being posted to individual accounts in the ledger, following the double-entry bookkeeping.