The Most Important Determinant of the Elasticity of Supply Is

question 85

Multiple Choice

The most important determinant of the elasticity of supply is

• A) whether the good is a durable good or a nondurable good.
• B) the price of the good.
• C) the time period firms have to adjust to the new price.
• D) the proportion of the good in the budget of consumers.

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Definitions:

Financial Instruments

Contracts that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

FASB

The Financial Accounting Standards Board, an organization responsible for setting and improving financial accounting and reporting standards in the U.S.

IASB

The International Accounting Standards Board, responsible for developing and enforcing the International Financial Reporting Standards (IFRS).

Fair Value Measurement

An accounting approach that provides an estimate of the price at which an asset could be exchanged or a liability settled, based on current market conditions.