If a 30 Percent Change in Price Causes a 15

question 25

Multiple Choice

If a 30 percent change in price causes a 15 percent change in quantity supplied,then the price elasticity of supply is about

• A)0.5,and supply is elastic.
• B)0.5,and supply is inelastic.
• C)2,and supply is inelastic.
• D)2,and supply is elastic.

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Definitions:

Activity

Actions taken or work performed, typically aimed at achieving certain goals or objectives.

Profitability

The ability of a business to earn a profit, which is a financial gain that results when the amount of revenue gained from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Asset Management

The practice of strategically managing company or individual assets to increase value and achieve financial objectives.

Return on Assets

A financial ratio that indicates how profitable a company is relative to its total assets, demonstrating the efficiency of management in using assets to generate profit.