If the Percentage Change in Price Is 10 and the Percentage

question 215

Multiple Choice

If the percentage change in price is 10 and the percentage change in quantity supplied is 10, supply is:

• A)unaffected by price changes.
• B)inelastic.
• C)unitary elastic.
• D)elastic.

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Definitions:

Gross Profit

The difference between revenue generated from goods or services sold and the cost of those goods or services sold, not accounting for other operating expenses.

Beginning Inventory

The value of inventory held by a company at the start of an accounting period, used to calculate cost of goods sold during the period.

Ending Inventory

The total value of all goods available for sale at the end of an accounting period, reflecting purchases and sales within that period.

Average Method

An inventory costing method that calculates the cost of goods sold based on the average cost of all similar items in inventory.