An Increase in Demand Will Increase Prices Most When Supply

question 153

Multiple Choice

An increase in demand will increase prices most when supply is

• A)elastic.
• B)unit elastic.
• C)inelastic (but not perfectly inelastic).
• D)perfectly inelastic.

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Definitions:

Adequate Cash Flow

Sufficient amounts of cash on hand that an entity has to meet its financial obligations and operational needs.

Bills

Documents indicating a transaction or an obligation to pay for goods or services received.

QBO

Refers to QuickBooks Online, an accounting software based in the cloud, aimed at assisting small to medium businesses.

Expenses

The costs incurred by a business or individual in the process of earning revenue.