If the Price Elasticity of Supply Is 1

question 9

Multiple Choice

If the price elasticity of supply is 1.5,and a price increase led to a 1.8% increase in quantity supplied,then the price increase is about

• A)0.67%.
• B)0.83%.
• C)1.20%.
• D)2.70%.

---

Definitions:

Depreciation Expense

Breaking down the investment in a solid asset over the time it serves its purpose.

Service Revenue

Income earned by a company for the provision of services to its customers.

Prepaid Expense

An expense that has been paid in advance and recorded as an asset until it becomes an actual expense.

Accrued Revenue

Income earned but not yet received, representing goods or services provided to customers on credit.