A Technological Breakthrough Lowers the Cost of Photocopiers

question 122

Multiple Choice

A technological breakthrough lowers the cost of photocopiers.If the demand for photocopiers is price inelastic,photocopier sales

• A)fall and total revenue increases.
• B)fall and total revenue decreases.
• C)rise and total revenue increases.
• D)rise and total revenue decreases.
• E)rise,but changes in total revenue will depend on elasticity of supply.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, recognized in the income statement.

Income Statement

A financial report that shows the revenue, expenses, and profit or loss of a business over a specific period of time.

Adjusting Journal Entry

An accounting entry made to correct or update the financial records and ensure accurate reporting.

Liabilities

Financial obligations or debts that a company owes to external parties, which must be settled over time through the transfer of economic benefits.