If the Price of Good X Increases by 1 Percent

question 63

Multiple Choice

If the price of good X increases by 1 percent, then the quantity supplied increases by more than 1 percent. This means

• A) supply is elastic.
• B) supply is unit-elastic.
• C) supply is inelastic.
• D) the good has good substitutes.

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Definitions:

Accounting Principles

The rules and guidelines that companies must follow when reporting financial data and accounting information.

Proprietorships

Business entities owned by one individual, where there is no legal distinction between the owner and the business.

Partnerships

A form of business organization in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a partnership agreement.

Cooperatives

Business organizations owned and operated by a group of individuals for their mutual benefit, where members democratically control the operations and profits are distributed according to each member's contribution.