Suppose the Price Elasticity of Demand for Your Economics Textbook

question 16

Multiple Choice

Suppose the price elasticity of demand for your economics textbook is -1.If the publisher raises the price by 5 percent,

• A)revenues will rise 5 percent
• B)quantity demanded will rise 5 percent
• C)total revenues will not change
• D)revenues will fall
• E)revenues will fall 5 percent

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Definitions:

Trial Balance

A financial record-keeping sheet that consolidates the balances of various ledgers into uniform debit and credit column totals.

Journalizing

The process of recording transactions in a journal or ledger in the field of accounting.

Posting Process

In accounting, this is the step where transactions are transferred from the journal to the respective accounts in the ledger, updating the account balances.

Trial Balance

A worksheet in bookkeeping that assembles the balances from each ledger into corresponding totals in debit and credit categories.