The Price Elasticity of Supply Measures How Responsive

question 60

Multiple Choice

The price elasticity of supply measures how responsive

• A)equilibrium price is to equilibrium quantity.
• B)sellers are to a change in buyers' income.
• C)sellers are to a change in price.
• D)consumers are to the number of substitutes.

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Definitions:

Investment Account

A financial account held at a bank or brokerage that is used to hold securities, stocks, bonds, and other investments.

Unamortized Acquisition Differential

The portion of the difference between the purchase price and the book value of an acquired entity that has not yet been amortized.

Equity Method

An accounting technique used by a company to record its investment in another company based on the profit or loss and other comprehensive income of the investee.

Voting Shares

Shares of stock that grant the shareholder the right to vote on matters of corporate policy and the election of board members.