A Bakery Would Be Willing to Supply 500 Donuts Per

question 431

Multiple Choice

A bakery would be willing to supply 500 donuts per day at a price of $0.50 each.At a price of $0.80,the bakery would be willing to supply 1,100 donuts.Using the midpoint method,the price elasticity of supply for donuts is about

• A) 0.62, and supply is elastic.
• B) 0.62, and supply is inelastic.
• C) 1.63, and supply is elastic.
• D) 1.63, and supply is inelastic.

---

Definitions:

Return On Total Assets

A profitability ratio that measures the net income generated from total assets during a period.

Earnings Per Share

A metric that calculates a company's profit divided by its number of outstanding shares of common stock.

Price-Earnings Ratio

A financial metric used to evaluate the relative value of a company's shares, calculated by dividing the market price per share by the earnings per share.

Dividend Payout Ratio

The percentage of earnings distributed to shareholders in the form of dividends.