A Given Supply Curve Has a Zero Intercept

question 49

Multiple Choice

A given supply curve has a zero intercept.At the current equilibrium price the price elasticity of supply equals

• A) 1.
• B) 0.
• C) 2.
• D) Not enough information.

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Definitions:

Retained Earnings

The portion of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business, or to pay debt.

Plant Expansion

The process of increasing the capacity or capabilities of existing facilities through additional space, equipment, or technology.

Dividend Declarations

A corporate action where a company announces the payment of dividends to its shareholders.

Retained Earnings

The portion of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business or to pay debt.