When Economists Are Sketching Examples of a Demand or Supply

question 44

Multiple Choice

When economists are sketching examples of a demand or supply curve that is close to horizontal, they refer to that demand or supply curve as _______.

• A) elastic
• B) inelastic
• C) having zero elasticity
• D) price inelasticity

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Definitions:

General Ledger

A comprehensive ledger that contains all the financial accounts of a business, recording every transaction that occurs.

Accounts Receivable Subsidiary Ledger

A detailed ledger that tracks individual transactions with customers, supporting the summary balances shown in the main accounts receivable account.

Accounts Payable

Accounts payable refers to the amounts owed by a company to its creditors for goods or services received that have not yet been paid for.

Nominal Accounts

Accounts that are closed at the end of each accounting period; includes revenue, expense, and withdrawal accounts.