If a 5 Per Cent Increase in the Price Results

question 128

Multiple Choice

If a 5 per cent increase in the price results in a 9 per cent increase in quantity supplied, the elasticity of supply is

• A) 1.20.
• B) 0.30.
• C) 0.55.
• D) 1.80.

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Definitions:

Cash Cows

Products or business units that generate significantly more money than they consume, often providing the bulk of a company's profit.

Stars

High-performing items or individuals within a portfolio, business, or organization, typically showing significant growth potential and market leadership.

Retrenchment

A strategy or action taken by businesses to reduce costs or spending in response to economic challenges, often involving cuts in workforce, operations, or investment.

Strong Cash Flow

A financial situation where a company has a steady and robust inflow of cash, indicating good liquidity and operational health.