In Which of the Following Situations Would Supply Be the Most

question 40

Multiple Choice

In which of the following situations would supply be the most elastic?

• A)An auto parts manufacturer is operating at capacity.
• B)A real estate developer in Boston is looking to build condos on the waterfront.
• C)A furniture manufacturer is operating its factory 8 hours per day.
• D)A hotel has all of its rooms booked for each night of the next 3 months.

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Definitions:

Credit Memorandum

A document issued by a seller to a buyer, reducing the amount the buyer owes the seller under the terms of an earlier invoice.

Segregation Of Duties

An internal control measure that divides responsibilities among multiple employees to reduce risk of fraud or error.

Adjusted Cash Balance

The cash balance reported in the financial statements, adjusted for any outstanding checks and deposits in transit that have not yet been cleared or recorded by the bank.

Deposit In Transit

Refers to money that has been received and recorded by a business but has not yet been recorded by the bank.