Which of the Following Statements About Elasticity of Supply Is

question 40

Multiple Choice

Which of the following statements about elasticity of supply is true?

• A)Elasticity of supply is always unity.
• B)Elasticity of supply is always zero.
• C)Elasticity of supply is always negative.
• D)Elasticity of supply is always positive.

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Definitions:

Calls

In finance, refers to an agreement that gives the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other instrument at a specified price within a specific time period.

Step-Variable Cost

Costs that remain fixed over a specific range of production or activity, but jump to a higher level once a certain threshold is exceeded.

Fixed Cost

Expenses that do not change with the level of output or sales, such as rent or salaries.

Mixed Cost

Expenses that contain both fixed and variable components and change in total with the level of activity but not proportionately.