If the Quantity of a Good Supplied Is Not Very

question 29

Multiple Choice

If the quantity of a good supplied is not very sensitive to the price of the good, economists say the supply of the good is relatively

• A) inelastic.
• B) elastic.
• C) robust.
• D) inverse.

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Definitions:

Inventory

The total amount of goods held by a company for the purpose of resale or production.

Adjusting Journal Entry

An accounting record made to amend the preliminary financial statements towards the accrual basis of accounting, ensuring all revenues and expenses are recorded in the correct period.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life.

Assets

Economic resources controlled or owned by a business, which are expected to produce benefits or value in the future.