In Interpreting the Ed Value as Either Elastic or Inelastic

question 267

Multiple Choice

In interpreting the Ed value as either elastic or inelastic, we look at the

• A)Ed coefficient with its negative sign.
• B)absolute value of the Ed coefficient.
• C)percentage change in price.
• D)percentage change in quantity.

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Definitions:

General Ledger

A comprehensive record of all financial transactions that occur within a company, used to compile financial statements.

Posting

The procedure of transferring journal entries to the ledger accounts.

Adjusting Entries

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

General Journal

A primary accounting record used to record all types of transactions, including adjustments, in chronological order.