If Price Elasticity of Supply Is Less Than 1

question 355

Multiple Choice

If price elasticity of supply is less than 1

• A) supply is elastic.
• B) demand is elastic.
• C) demand is inelastic.
• D) supply is inelastic.

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Definitions:

Accounts Receivable

Customer debts to a company for the provision of services or delivery of goods not yet paid for.

Accounting Cycle

A series of steps taken in order to prepare financial statements, starting from transactions and ending with closing the books.

Post-closing Trial Balance

A financial statement that lists all accounts and their balances after closing entries have been made, usually the final step in the accounting cycle.

Reversing Entries

Journal entries made at the beginning of an accounting period to reverse or cancel out adjusting entries from the end of the previous period.