Which of the Following Occurs When Price Is Inelastic

question 104

Multiple Choice

Which of the following occurs when price is inelastic?

• A)Revenue is unaffected by price changes.
• B)Revenues decrease when price increases.
• C)Price and revenue change in the same direction.
• D)The demand curve is more horizontal.
• E)Quantity demanded increases when price increases.

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Definitions:

Dividend Declared

The action by a company's board of directors to distribute a portion of the earnings to shareholders, specified as an amount per share.

Originally Issued

Pertains to securities or stocks that have been made available for sale to the public for the first time.

Par-Common Stock

The face value of a share of common stock as designated in the corporate charter.

Paid-In Capital

Money that investors have given to a corporation in exchange for equity, representing the capital contribution from shareholders when issuing and selling shares.