_____ is defined as a gradual and sustained rise in price level of goods and services in relation to their availability.

• A. Basis Point Rate

• B. Hike Rate

• C. Elastic Supply

• D. Elasticity of Price

• E. Price Inflation

• F. Aggregate Supply

The wholesalers can bring about an economy of scale.

• A. True

• B. False

Which of the following statement isn't a characteristics of the wholesaler?

• A. They may have to operate in specific areas or regions accorded them by the producer

• B. They are often popular in the line of goods they supply

• C. They are not risk bearers

• D. They have good storage facilities

• E. They often pay for goods supplied by the manufacturers in advance

• F. They usually have business agents or brokers

The wholesalers act as the middlemen in supply chain.

• A. True

• B. False

Large retailers who buy directly from manufacturers are termed as _____.

• A. Wholesale Retailers

• B. Certified Retailers

• C. Codified Retailers

• D. Commodity Retailers

• E. Manufacturers Retailer

• F. Conspicuous Retailers

A unitary elasticity of supply is seen when a change in price brings about a corresponding and proportional change in the quantity of goods or services supplied.

The graph below shows a unit elasticity of supply:

Below is an instance of a unitary elasticity of supply:

• If a 100% increase in the price of wheat translates into a 100% increase in the production and supply of wheat, then the supply elasticity is said to be unitary elastic and its value is equal to 1.

Unitary elasticity is always equal to 1, that is: Es = 1

The supply curve runs diagonally and will pass through the center.