If the Supply Curve Is Upward Sloping the Price Elasticity

question 2

Multiple Choice

If the supply curve is upward sloping the price elasticity of supply must be:

• A) Positive
• B) Greater than one
• C) Less than one
• D) Negative

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Definitions:

Times Interest Earned Ratio

A financial metric that measures a company's ability to pay its interest expenses with its before-interest earnings.

Gross Margin Percentage

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, representing the proportion of each sales dollar that is gross profit.

Return on Equity

A measure of financial performance that calculates the return on shareholders' equity investments.

Equity Multiplier

A financial ratio indicating how much of a company's assets are financed by its shareholders' equity.