If Output in the Calculator Market Increases by 5 Percent

question 18

Multiple Choice

If output in the calculator market increases by 5 percent when the price increases by more than 5 percent, then

• A)supply is inelastic
• B)supply is elastic
• C)a small increase in price will cause a leftward shift of the supply curve
• D)a small increase in price will cause a rightward shift of the supply curve
• E)a large increase in price will cause a large shift of the supply curve

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Definitions:

Projected Benefit Obligation

An actuarial calculation of the present value of pension benefits owed to employees, measured by the projected salary levels.

Interest Cost

The expense associated with borrowing funds, calculated as the rate of interest times the principal amount of the debt.