The Price Elasticity of Demand for a Variable Input Will

question 27

Multiple Choice

The price elasticity of demand for a variable input will be greater

• A) the fewer substitutes there are for the final product.
• B) the easier it is for a particular input to be substituted for by other inputs.
• C) the lower the price elasticity of supply of all other inputs.
• D) the smaller the proportion of total costs accounted for by a particular variable input.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members. It's often quoted as the amount each share receives (dividends per share).

Unearned Rent

Income received for rent before the rental period has occurred, recorded as a liability until the period passes.

Adjusted Trial Balance

A listing of all the accounts and their balances after adjustments have been made, used to prepare financial statements.

Retained Earnings

The portion of net income that is kept by a company to reinvest in its core business or to pay debt, rather than being distributed to shareholders as dividends.