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.

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Definitions:

Future Business

Operations, activities, or engagements that a company plans to undertake in coming periods to increase its profitability and growth.

Current Assets

Resources anticipated to be turned into cash, sold, or used up within a timeframe of one year or during the usual business cycle if it extends beyond a year.

Office Supplies

Items used in offices for daily operations, including paper, pens, and staplers.

Cash

Liquid assets held by a company or an individual, used for the purpose of transactions or as a means to settle debts.