To Calculate the Price Elasticity of Supply, We Divide

question 152

Multiple Choice

To calculate the price elasticity of supply, we divide

• A)the percentage change in price by the percentage change in quantity supplied.
• B)the percentage change in quantity supplied by the percentage change in price.
• C)rise by the run.
• D)the average price by the average quantity supplied.

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Definitions:

Merchandise Inventories

Goods, either manufactured or purchased, held for sale in the regular course of business.

Direct Method

A cash flow statement approach that itemizes actual cash flows from operating activities, rather than adjusting net income.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting its decrease in value over time.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital to find the net cash from operating activities.