Total Revenue Increases If Price ________ and Demand Is ________

question 152

Multiple Choice

Total revenue increases if price ________ and demand is ________.

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

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Definitions:

Held-to-Maturity Debt Securities

Financial instruments that a firm has the intent and ability to hold until they mature, recorded at amortized cost.

Marketable Securities

Financial instruments that are easily convertible to cash and are subject to minimal price risk.

Amortized Cost

The amount at which a financial asset or liability is measured at initial recognition minus principal repayments, plus or minus the cumulative amortization using the effective interest method.

Trading Securities

Financial instruments that are purchased and held primarily for selling them in the near term to generate income on short-term price differences.