Suppose That the Revenue of a Product Increases When Its

question 176

Multiple Choice

Suppose that the revenue of a product increases when its price decreases. Then demand for the product must

• A)be inelastic.
• B)be elastic.
• C)be unit elastic.
• D)be perfectly inelastic
• E)have an elasticity equal to 0.

---

Definitions:

Common Shares

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Consolidated Statement

Financial statements that aggregate the assets, liabilities, and operations of a parent company and its subsidiaries.

Equity Earnings

The portion of an investee's profits or losses that is attributed to the investor based on their ownership percentage.

Goodwill Impairment

A write-down of the goodwill account on a company's balance sheet if the fair value of a business unit falls below its carrying value.