Suppose the Value of the Price Elasticity of Supply Is

question 160

Multiple Choice

Suppose the value of the price elasticity of supply is 4.What does this mean?

• A)A 4 percent increase in the price of the good causes quantity supplied to increase by 1 percent.
• B)A 1 percent increase in the price of the good causes the supply curve to shift upward by 4 percent.
• C)A 1 percent increase in the price of the good causes quantity supplied to increase by 4 percent.
• D)For every $1 increase in price, quantity supplied increases by 4 units.

---

Definitions:

External User

External User refers to individuals or entities outside of a company who use its financial statements to make decisions, such as investors, creditors, and regulatory agencies.

Federal Government

The national government of a federated state, which holds the authority to govern the issues that affect the entire country.

Financial Accounting Standards Board

An independent organization responsible for establishing and improving financial accounting and reporting standards in the United States.

Accounting Principles

Fundamental guidelines or rules that form the basis for accounting practices and financial reporting.