If the Price Elasticity of Supply Equals Zero, This Implies

question 109

Multiple Choice

If the price elasticity of supply equals zero, this implies that:

• A) suppliers can easily change the quantity supplied of the product as the price of the product changes.
• B) the period under consideration is a very long-run time period.
• C) the supply curve is perfectly vertical.
• D) the percentage change in quantity supplied equals the percentage change in product price.

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Definitions:

Salaries Expense

This refers to the total amount paid by a company for employee salaries over a specific period, recorded on the income statement.

Trial Balance

A bookkeeping worksheet listing the balances of all ledgers in two columns, debits and credits, used to verify the equality of the two totals.

Cash Dividend

A payment made by a company to its shareholders, typically in the form of cash, out of its profits or reserves.

Journalize

The process of recording transactions in a journal, marking the first step in the accounting cycle.