Suppose the Supply of Bicycles Is Price Elastic

question 160

Multiple Choice

Suppose the supply of bicycles is price elastic. This means that

• A) consumers will respond significantly to an increase in the quantity supplied of bicycles.
• B) suppliers will increase the quantity supplied of bicycles, but not immediately.
• C) suppliers face many substitutes for bicycles.
• D) suppliers will respond significantly to changes in the price of bicycles.

---

Definitions:

Vice President

An executive or senior officer in a business or organization, typically reporting to the president or CEO, with specific responsibilities that vary by the entity.

Finance

The management of large sums of money, especially by governments or large companies, encompassing activities such as lending, investing, and budgeting.

Administrative Expense

Costs related to the general operation of a company, which may include salaries of executive staff, office supplies, and utility expenses not directly tied to production.

Period Cost

Costs that are expensed in the period in which they are incurred and are not directly tied to production activity, such as selling, administrative, and general expenses.