If the Price of a A Good Increases by 10

question 150

Multiple Choice

If the price of a a good increases by 10 percent and the quantity supplied increases by 5 percent,then the elasticity of supply is

• A) greater than one and supply is elastic.
• B) negative and supply is inelastic.
• C) less than one and supply is elastic.
• D) less than one and supply is inelastic.
• E) greater than one and supply is inelastic.

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Definitions:

Accounts Receivable

Receivables from clients to a corporation for products delivered or services rendered without payment.

Unearned Subscription Revenue

Unearned subscription revenue represents money received by a company for subscriptions or services not yet provided or delivered, recognized as a liability until the service is fulfilled.

Unearned Rent

Income received by a landlord for a period of rent not yet occurred; it's considered a liability until the service period passes.

Adjusting Entry

An accounting journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate years, ensuring financial statements are accurate.