Suppose a Decrease in the Supply of Bottled Water Results

question 102

Multiple Choice

Suppose a decrease in the supply of bottled water results in a decrease in revenue.This indicates that

• A)the demand for bottled water is inelastic in the price range considered.
• B)the demand for bottled water is elastic in the price range considered.
• C)the supply of bottled water is inelastic in the price range considered.
• D)the supply of bottled water is elastic in the price range considered.

---

Definitions:

Ownership

The right to possess property, whether tangible or intangible, and exercise control over it.

Valuation Allowance

A reserve created against the deferred tax asset due to uncertainty concerning its realization.

Unrealized Gain

Profit that comes from an investment that has increased in value but has not yet been sold by the investor, thus not resulting in actual income.

Trading Investments

Assets purchased with the intention of reselling in the short term for profit, often including stocks and bonds.