The Price of a Bus Ride Decreases, and the Total

question 154

Multiple Choice

The price of a bus ride decreases, and the total revenue of the bus company decreases. The demand for bus rides is

• A) perfectly elastic.
• B) inelastic.
• C) unit elastic.
• D) elastic but not necessarily perfectly elastic.

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Definitions:

Budgeted Unit Sales

The number of units that a company plans or expects to sell over a specific period according to its budget.

Raw Material Needs

The quantity and type of raw materials required for a company to manufacture its products.

Beginning Inventory

The value of goods available for sale or use at the start of an accounting period.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting the cost of goods sold.