Suppose the Value of the Price Elasticity of Supply Is

question 160

Multiple Choice

Suppose the value of the price elasticity of supply is 4.What does this mean?

• A)A 4 percent increase in the price of the good causes quantity supplied to increase by 1 percent.
• B)A 1 percent increase in the price of the good causes the supply curve to shift upward by 4 percent.
• C)A 1 percent increase in the price of the good causes quantity supplied to increase by 4 percent.
• D)For every $1 increase in price, quantity supplied increases by 4 units.

---

Definitions:

Inventory Method

A systematic approach to determine the value of inventory at the beginning and end of an accounting period to calculate the cost of goods sold.

Inventory Item

A specific product or goods that are held in stock by a business, potentially for sale or manufacturing purposes.

Place and Condition

Terms used to refer to the physical location and state of goods in a transaction, affecting their valuation and delivery responsibilities.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the efficiency of a company in managing its production and labor costs.