Elasticity Refers to

question 32

Multiple Choice

Elasticity refers to

• A) The ability of the demand curve to shift in and out
• B) The degree by which the demand curve includes other markets
• C) The responsiveness of quantity to changes in price
• D) The rate that quality increases as prices increase

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Definitions:

Artificial Time Periods

A concept in accounting referring to arbitrary time intervals chosen for the purpose of financial reporting, such as quarters or fiscal years.

Cash Basis Accounting

An accounting method where revenues and expenses are recognized when cash is received or paid, rather than when earned or incurred.

Net Income

The total earnings of a company after all expenses and taxes have been subtracted from revenue.

Sales

The total amount of goods or services sold by a company within a specific period; it is a primary source of revenue for retail and manufacturing businesses.