Which Statement Is NOT True About the Elasticity of Supply

question 101

Multiple Choice

Which statement is NOT true about the elasticity of supply?

• A) Elasticity of supply cannot be a negative number.
• B) A unitary elastic supply curve crosses the origin (0, 0) on a graph.
• C) Elasticity of supply measures the percent change in quantity supplied over the percent change in price.
• D) Elasticity of supply tends to fall as companies have more time to adjust their production methods.

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Definitions:

Drawings

Amounts withdrawn by the owner(s) of a business for personal use.

FASB

The Financial Accounting Standards Board (FASB) is a private organization that establishes financial accounting and reporting standards for companies and nonprofit organizations in the United States.

SEC

Stands for the Securities and Exchange Commission, a U.S. federal agency responsible for regulating the securities industry and protecting investors.

Generally Accepted Accounting Principles

A set of accounting standards and procedures that are used in the preparation of financial statements in the U.S.