Suppose That an Increase in the Price of a Good

question 68

Multiple Choice

Suppose that an increase in the price of a good leads to an increase in total revenue.Ignoring other factors (like supply) ,at its current price the good must be:

• A)price-inelastic.
• B)price-elastic.
• C)perfectly price-elastic.
• D)inferior.

Identify the differences between a business model and a revenue model.

Understand how bundled pricing and other pricing models can serve as competitive strategies.

Recognize how companies can leverage online platforms and digital goods for revenue.

Analyze the impact of negotiating with suppliers and sourcing strategies on COGS.

---

Definitions:

Standard Rate of Pay

The regular amount of pay given for standard work hours or for performing a standard task or job.

Unfavorable Variance

The difference between actual costs and standard or budgeted costs when actual costs are higher, indicating lower profitability.

Actual Costs

The real, specific expenses incurred or required to perform an operation, produce an item, or offer a service.

Standard Costs

Predetermined costs to manufacture a single unit or a number of units during a specific period under current or anticipated operating conditions.