If an Increase in the Supply of a Product in the Market

question 178

Multiple Choice

If an increase in the supply of a product in the market results in a decrease in price, but no change in the quantity traded, then

• A)the price elasticity of supply is zero.
• B)the price elasticity of supply is infinite.
• C)the price elasticity of demand is unitary.
• D)the price elasticity of demand is zero.

Comprehend the accounting methods (deferred contribution and restricted fund method) for contributions and investment income in not-for-profit organizations.

Recognize how donated goods and capital assets should be accounted for in financial statements.

Understand how endowment contributions and their investment income are presented and used within financial statements.

Recognize the financial reporting requirements and options available to Canadian private not-for-profit organizations.

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Definitions:

Cournot Equilibrium Price

A concept in oligopoly theory where each firm chooses its quantity to maximize profit, assuming the other firms' quantities remain fixed, leading to a stable market price.

Constant Unit Cost

A situation where the cost to produce one unit of a good remains the same, regardless of the total quantity produced.

Demand Function

A mathematical relationship that expresses the quantity of a good or service demanded at various prices.

Newspaper Prices

The cost at which newspapers are sold to consumers, which can influence demand and circulation numbers.