Why is the price elasticity of supply greater if there is more time for adjustment to an increase in the price of an item?
What will be an ideal response?
If more time is available for adjustment to a price increase, then more resources can flow into an industry, and more firms can enter the industry. Thus, after a longer period of time a greater expansion of production can take place in response to the rise in the price of the item.
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Which of the following transactions would be included in Japan's current account?
A) A Japanese citizen purchases 50 shares of Google stock. B) An American citizen purchases a new Toyota made in Japan. C) A Japanese citizen purchases a new Toyota made in Japan. D) An American citizen purchases 50 shares of Toshiba stock.
A scenario plan is different from business plan because:
a. A scenario plan focuses on business cash flows, and a business plan focuses mainly on strategy. b. Business plans are for long periods of time, and scenario plans are for short periods, like capital budgeting projects. c. A scenario plan is long term and focuses on industry, demographic, industry, and social trends. Business plans are short-term and focus mainly on cash flows and relatively short-term strategies. d. Business plans are usually for one-year and two year periods. Scenario plans are medium term, with time horizons of three to five years. e. Scenario plans tend to focus on long-term marketing strategies and the proper handling of non-operating assets (e.g., marketable security holdings). Business plans focus more on mergers and acquisitions and the proper lines of business in which a company should be involved.