If the Price Elasticity of Supply Is 1

question 85

Multiple Choice

If the price elasticity of supply is 1.2,and price increased by 5%,quantity supplied would

• A)increase by 4.2%.
• B)increase by 6%.
• C)decrease by 4.2%.
• D)decrease by 6%.

Evaluate strategies to improve critical and creative thinking skills.

Understand the mental processes involved in sudden insights or solutions to problems.

Identify the elements of mastery in a variety of skills beyond rote memorization.

Understand the relationship between the prices of capital and labor and their substitution in production.

---

Definitions:

Cost Of Installment Goods Sold

The cost assigned to goods that have been sold on installment, including both the cost of manufacturing and a portion of interest on the installment sales.

Installment Sales Revenue

Income recognized from sales made where payment is received in periodic installments, often used in financing transactions for high-ticket items.

Deferred Gross Profit-Year 1

This refers to the portion of gross profit on sales made in the first year that is not recognized immediately but is deferred to future periods under certain accounting methods.

Realized Gross Profit

The gross income that a company has earned and recognized from its sales or services, after accounting for the cost of goods sold, but before deducting operating expenses.