Since It Is Always a Negative Number, Economists Use the Convention

question 22

Multiple Choice

Since it is always a negative number, economists use the convention of taking the absolute value of:

• A) the elasticity of total revenue.
• B) the price elasticity of surpluses .
• C) the price elasticity of shortages .
• D) price elasticity of demand.

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Definitions:

Supplies Account

An account used in accounting to track the amount spent on supplies that have not yet been used or consumed by the business.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities or equity on a company's balance sheet.

Credit

An entry on the right side of a ledger account, representing an increase in liabilities or equity or a decrease in assets; in a broader sense, also refers to the provision of resources by a creditor to a borrower.

Compound Entry

A journal entry that involves three or more accounts.