If the Quantity of Walkie-Talkies Supplied Increases by 5 Percent

question 249

Multiple Choice

If the quantity of walkie-talkies supplied increases by 5 percent when price increases by 12 percent, then

• A)the supply of walkie-talkies is inelastic.
• B)the supply of walkie-talkies is elastic.
• C)the walkie-talkie supply curve will shift to the right.
• D)the walkie-talkie supply curve will shift to the left.

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Definitions:

Ending Inventory Value

The total value of all the goods available for sale at the end of a financial period.

LIFO Periodic

An inventory accounting method where the last items purchased are the first ones used in costing inventory, applied at the end of the accounting period.

Inventory Value

The total cost or market value of all the goods and products held by a company intended for sale in the ordinary course of business.

Rising Prices

Refers to an economic condition where the general level of prices for goods and services increases over a period of time.