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The Price Elasticity of Supply Is Calculated as the Change

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The price elasticity of supply is calculated as the change in supply divided by the change in price.


Definitions:

Perpetual Inventory Method

An inventory management method where stock levels are updated in real-time with each sale or purchase transaction.

Petty Cash Fund

Petty cash fund is a small amount of cash kept on hand for making immediate payments for minor and incidental expenses.

Perpetual Inventory System

An inventory management system where inventory levels are updated in real-time or on a continuous basis following each purchase or sale transaction.

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