If, for a Given Percentage Increase in Price, Quantity Supplied

question 67

Multiple Choice

If, for a given percentage increase in price, quantity supplied increases by a proportionately larger percentage, then supply is

• A)unit elastic.
• B)perfectly elastic.
• C)relatively inelastic.
• D)elastic.

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Definitions:

Process Costing

A method of costing that is used in industries where production is continuous and the product is indistinguishable from unit to unit.

Equivalent Units

A concept used in cost accounting to represent the amount of work done on partially finished goods, converted into the number of fully finished units.

Conversion Costs

The combination of labor and manufacturing overhead costs required to transform raw materials into finished products.

Processing Department

A specific department within a manufacturing operation that focuses on a particular stage of the production process.