Refer to the Following Graph to Answer the Question

question 24

Multiple Choice

Refer to the following graph to answer the question: Suppose price rises from $90 to $110.Total revenue moves in the ________ (same,opposite) direction as the dominant effect.In this case,total revenue ____________ (increases,decreases,stays the same) because the quantity effect is _________ (larger than,smaller than,the same as) the price effect.

• A)same; increases; larger than
• B)same; decreases; smaller than
• C)same; decreases; larger than
• D)opposite; increases; larger than
• E)opposite; decreases; smaller than

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Definitions:

Securities and Exchange Act

A U.S. law enacted in 1934 to regulate the securities industry and mandate disclosure of important financial information for publicly traded companies.

Publicly Traded Firms

Companies whose shares are available for purchase by the general public on stock exchanges.

Independent Accountants

Are professional auditors or accountants not employed by the company they are auditing, ensuring unbiased financial analysis and reporting.

London Stock Exchange

A leading global stock exchange located in London, United Kingdom, where stocks, bonds, and other securities are bought and sold.