If the Elasticity of Supply of TV Sets Is Equal

question 171

Multiple Choice

If the elasticity of supply of TV sets is equal to 3, then a 10 percent increase in the price of a TV will

• A) increase the quantity supplied by 3.33 percent.
• B) increase the quantity supplied by 30.0 percent.
• C) increase the quantity supplied by 0.33 percent.
• D) decrease the quantity supplied by 30.0 percent.

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Definitions:

Adjusting Entries

Bookkeeping entries recorded at the conclusion of an accounting cycle to apportion earnings and outlays to the appropriate period.

Interim Periods

Monthly or quarterly accounting time periods.

Annually

Occurring once every year.

Income Summary Account

An account used in the closing process to summarize the period's revenues and expenses before transferring the net income or loss to retained earnings.