If a Rise in Price Results in a Decrease in Total

question 28

Multiple Choice

If a rise in price results in a decrease in total revenue, then the price elasticity of demand is

• A)negative.
• B)zero.
• C)greater than zero but less than 1.
• D)equal to 1.
• E)greater than 1.

---

Definitions:

Inventory Returns Estimated

The anticipated amount of goods that will be returned to inventory due to cancellations, defects, or unsatisfactory products.

Current Liabilities

Obligations a company must fulfill within the forthcoming fiscal year, including debts, accounts payable, and other short-term financial responsibilities.

Balance Sheet

A balance sheet is a financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Periodic Inventory System

An inventory management method where updates to inventory records are made at specific intervals, not continuously.