If an Increase in Price from $1 to $2 Per

question 57

Multiple Choice

If an increase in price from $1 to $2 per unit leads to an increase in quantity supplied from 20 to 100 units,then the value of the price elasticity of supply is _____

• A)0.38.
• B)2.
• C)2.67.
• D)4.
• E)8.

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Definitions:

Accounts Payable

Debts of a business to creditors arising from the acquisition of goods and services on credit.

Purchases on Account

Transactions where goods are bought and the payment is deferred to a future date, often recorded in accounts payable.

Supplies Account

An account used in accounting to track the amount spent on supplies that have not yet been used or consumed by the business.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities or equity on a company's balance sheet.