In January the Price of Widgets Was $1

question 12

Multiple Choice

In January the price of widgets was $1.00,and Wendy's Widgets produced 80 widgets.In February the price of widgets was $1.50,and Wendy's Widgets produced 110 widgets.In March the price of widgets was $2.00,and Wendy's Widgets produced 140 widgets.The price elasticity of supply of Wendy's Widgets was about

• A)0.79 when the price increased from $1.00 to $1.50 and 0.84 when the price increased from $1.50 to $2.00.
• B)1.27 when the price increased from $1.00 to $1.50 and 1.19 when the price increased from $1.50 to $2.00.
• C)0.79 when the price increased from $1.00 to $1.50 and 1.19 when the price increased from $1.50 to $2.00.
• D)1.27 when the price increased from $1.00 to $1.50 and 0.84 when the price increased from $1.50 to $2.00.

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Definitions:

Capital Account

An account on the balance sheet that represents the equity or ownership interest of owners in the business.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to ensure a company's bookkeeping system is mathematically correct.

Balance Sheet

A financial record that outlines the value of a company's assets, its liabilities, and the equity belonging to investors, at a particular time.

Financial Statement Items

These are line items or components found in financial statements like the balance sheet, income statement, and cash flow statement, representing financial performance and position.