What Does the Price Elasticity of Supply Measure

question 112

Multiple Choice

What does the price elasticity of supply measure

• A)how much the quantity supplied responds to changes in input prices
• B)how much the quantity supplied responds to changes in the price of the good
• C)how much the price of the good responds to changes in supply
• D)how much sellers respond to changes in technology

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Definitions:

Common Size Percentages

Financial analysis tool that expresses each line item in a financial statement as a percentage of a base figure.

Cost of Goods Sold

Direct costs attributable to the production of the goods sold by a company, including materials and labor costs.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations, calculated as current assets divided by current liabilities.

Financial Information

Data that pertains to the financial status, performance, and changes in the economic resources of an entity.