All Things Equal, the Price Elasticity of Supply

question 129

Multiple Choice

All things equal, the price elasticity of supply

• A) will be greater in the short run than in the long run.
• B) will be greater in the long run than in the short run.
• C) is the same for the short run and the long run.
• D) approaches zero in the long run.

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Definitions:

Residual Value

The estimated amount that an asset will be worth at the end of its useful life.

Depreciable Amount

The cost of a tangible or physical asset, minus its salvage value, over which the cost is allocated during the asset's useful life.

Accumulated Depreciation

The total depreciation expense that has been recorded for an asset over its service life, reducing its original cost to its current book value.

Residual Value

The estimated value that an asset will have at the end of its useful life, often considered in depreciation calculations.