If the Price of Apples Rises from

question 78

Multiple Choice

If the price of apples rises from $.50 to $1.50 and quantity demanded falls from 1,000 to 900, we can conclude that the price elasticity for apples is

• A) −20.
• B) inelastic.
• C) elastic.
• D) unitary.

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Definitions:

Cost Of Goods Sold

The direct financial outlays for creating goods sold by a company, covering materials and labor.

Cash Cycle

The time it takes for a company to convert its investments in inventory back into cash, encompassing the entire sales and payments process.

Factoring Receivables

The financial transaction where a business sells its accounts receivable (invoices) to a third party (factor) at a discount to obtain immediate cash.

Blanket Inventory Lien

A secured interest over all of the inventory of a borrower, granting the lender the right to seize inventory in the event of non-payment.