If Total Revenue Does Not Change as a Result of a Rise

question 113

Multiple Choice

If total revenue does not change as a result of a rise in price,it follows that demand is

• A) perfectly elastic.
• B) perfectly inelastic.
• C) unit elastic.
• D) inelastic.
• E) elastic.

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Definitions:

Sales Mix

The composition of different products or services sold by a company, affecting its overall profitability.

Fixed Costs

Costs that remain constant regardless of production or sales volumes, including rent, salaries, and insurance costs.

Operating Leverage

A measure of how a company's operating income responds to a change in sales volume, indicating the proportion of fixed versus variable costs.

Variable Costs

Expenses that vary based on the amount of products or services a company generates.