The Price Elasticity of Supply Is Usually a Positive Number

question 111

Multiple Choice

The price elasticity of supply is usually a positive number because:

• A)quantity supplied increases in response to income increases.
• B)quantity supplied increases in response to price increases.
• C)the quantity demanded usually rises when price falls, and therefore suppliers would want to capitalise on this increase in demand.
• D)price rises when supply increases.

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Definitions:

Perfection

Perfection is a legal process that establishes a secured creditor's interest in a debtor's collateral, making it legally enforceable against third parties.

Collateral

Property or assets that are pledged as security for the repayment of a loan, subject to seizure on default.

Consensual Secured Transaction

A financial agreement where both parties agree to the deal, and collateral is provided to secure the transaction.

Debtor

An individual or corporation that owes money or a debt to another, known as the creditor.