If the Quantity Supplied Responds Only Slightly to Changes in Price

question 171

Multiple Choice

If the quantity supplied responds only slightly to changes in price, then:

• A) supply is said to be elastic
• B) increases in supply resulting from an increase in price will not shift the supply curve very much
• C) supply is said to be inelastic
• D) supply is said to be unit elastic

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Definitions:

Corporate Shareholders

Individuals or entities that legally own one or more shares of stock in a corporation, thus having a claim on a part of its assets and earnings.

Limited Liability

A legal structure that limits the personal financial risk of the company's shareholders to their investment in the company.

Current Services

services that are performed and paid for within the current accounting period, affecting the period's financial statements.

Assets Owned

Refers to the resources that are owned by a company or individual which have economic value and can be used or sold to meet debts or obligations.