Under Which of the Following Situations Will Total Revenue Fall

question 99

Multiple Choice

Under which of the following situations will total revenue fall?

• A)If elasticity is > 1 and price falls.
• B)If elasticity is > 1 and price rises.
• C)If elasticity is < 1 and price rises.
• D)If elasticity is = 1 and price falls.

---

Definitions:

Contribution Format

A format for income statements that distinguishes between fixed and variable expenses, emphasizing the contribution margin.

Break-even Point

The sales level at which a business generates neither profit nor loss, covering all fixed and variable costs.

Unit Sales

The quantity of products sold, not considering the price at which they were sold.

Contribution Margin

Contribution Margin is the amount of revenue remaining after deducting variable costs, which can then be used to cover fixed costs or generate profit.