Total Revenue Decreases If Price ________ and Demand Is ________

question 185

Multiple Choice

Total revenue decreases if price ________ and demand is ________.

• A) falls; elastic
• B) falls; inelastic
• C) rises; inelastic
• D) rises; unit elastic

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Definitions:

Average Inventory

A metric that estimates the amount of inventory a business has on hand over a certain period, calculated by taking the sum of the beginning and ending inventory levels divided by two.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made on a periodic basis, as opposed to continuously.

Cost Of Goods Sold

The direct financial outlays for labor and materials that are necessary for producing goods a company sells.