If the Price Elasticity of Supply for Wheat Is Less

question 17

Multiple Choice

If the price elasticity of supply for wheat is less than 1,then the supply of wheat is

• A)inelastic.
• B)elastic.
• C)unit elastic.
• D)quite sensitive to changes in income.

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Definitions:

Profits

The financial gain obtained when the revenues generated from business activities exceed the expenses and costs incurred in operating the business.

Producing Units

Entities, either facilities or machinery, involved in the production process to manufacture goods or services.

Economy

The system of production, distribution, and consumption of goods and services in a particular geographic region or country.

Factor Markets

Markets where services of the factors of production (notably labor, land, and capital) are bought and sold.