If a 5 Percent Increase in Price Results in a 3

question 221

Multiple Choice

If a 5 percent increase in price results in a 3 percent increase in the quantity supplied, the elasticity of supply is

• A) 0.30.
• B) 0.60.
• C) 1.20.
• D) 1.66.

---

Definitions:

Current Assets

Assets that are expected to be converted into cash, sold or consumed within one year or within the business's operating cycle, whichever is longer.

Fixed Asset Turnover Ratio

A financial metric that measures a company's ability to generate net sales from its fixed assets, such as plant, property, and equipment, indicating efficiency in using these assets to generate revenue.

Marketing Efforts

Initiatives undertaken by a company to promote and sell its products or services to its target market.

Total Assets

The sum of all owned resources with economic value that a company or individual possesses.