If the Price Elasticity of Supply Is 2

question 105

Multiple Choice

If the price elasticity of supply is 2.5,we know that it is

• A) perfectly elastic.
• B) perfectly inelastic.
• C) unitary elastic.
• D) relatively inelastic.
• E) relatively elastic.

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Definitions:

Accounts Payable Period

The average amount of time it takes for a business to pay its invoices from suppliers and vendors, typically measured in days.

Cash Expenses

Outflows of cash within a certain period for operational activities, excluding non-cash expenses like depreciation.

Projected Sales

Estimates of the amount of revenue that a company expects to earn in the future.

Credit Sales

Credit sales refer to a transaction wherein the payment for the goods or services provided is made at a later date.