When Quantity Supplied Is Very Responsive to a Change in Price

question 356

Multiple Choice

When quantity supplied is very responsive to a change in price, supply is

• A) elastic.
• B) unit-elastic.
• C) inelastic.
• D) income sensitive.

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how many times a company collects its average accounts receivable within a given period.

Net Accounts Receivable

The amount of money owed by customers for goods or services that is expected to be collectible, after accounting for allowances for doubtful accounts.

Net Cash Sales

The amount of cash generated from sales transactions, after deducting returns, allowances, and discounts.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit customers by comparing net credit sales to the average accounts receivable.