If Demand Is Elastic,then

question 110

Multiple Choice

If demand is elastic,then

• A)An increase in price will reduce total revenue.
• B)An increase in price will increase total revenue.
• C)A decrease in price will reduce total revenue.
• D)A decrease in price will have no effect on total revenue.

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Definitions:

Balance Sheet

A ledger entry detailing a business’s resources, debts, and equity ownership at a fixed point in time.

Adjustment

A modification made to an account or financial statement to correct an error or reflect new information.

Unearned Revenue

Money received by a company for goods or services that have yet to be delivered or provided.

Rental Payments

Periodic payments made by a lessee to a lessor for the use of a property, equipment, or other asset.