The Demand for a Good Is Price Inelastic If

question 49

Multiple Choice

The demand for a good is price inelastic if

• A)a rise in price increases total revenue.
• B)a rise in price decreases total revenue.
• C)an increase in income decreases total revenue.
• D)an increase in income increases total revenue.
• E)the good is a luxury.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use, reducing its book value.

Gain of $2,000

Represents an increase in wealth or resources, typically accounted for in financial statements when an asset is sold for more than its cost.

Estimated Useful Life

The expected period during which an asset is predicted to be usable for the purpose it was acquired.

Depreciation Expense

An accounting method to allocate the cost of a tangible asset over its useful life to represent wear and tear over time.