P Is in Dollars and Q Is the Number of Units

question 72

Multiple Choice

p is in dollars and q is the number of units. Find the elasticity of the demand function at , and use it to determine how a price increase will affect total revenue. ​

• A)Since the demand is elastic, an increase in price will decrease the total revenue.
• B)Since the demand is elastic, an increase in price will increase the total revenue.
• C)Since the demand is inelastic, an increase in price will decrease the total revenue.
• D)Since the demand is inelastic, an increase in price will increase the total revenue.
• E)No change in revenue.

---

Definitions:

Discount Period

The timeframe during which a discount is available or the period between the receipt of a bill and its payment due date when a discount may be taken.

Full Settlement

A financial arrangement where a debtor pays a lump sum that is less than the total amount owed to fully settle the outstanding debt.

Perpetual Inventory System

An inventory accounting system that records purchases and sales of merchandise immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Periodic Inventory System

A periodic inventory system is an accounting method where inventory levels and cost of goods sold are determined at the end of an accounting period, not after each sale or purchase.