If a Change in Price Causes Total Revenue to Change

question 21

Multiple Choice

If a change in price causes total revenue to change in the same direction, we can conclude that the demand is:

• A) price inelastic.
• B) price elastic.
• C) unit price elastic.
• D) normal.

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Definitions:

Ledger

A book or other collection of financial accounts of a particular type, often the final record where data from journals is compiled.

Journal

A book or electronic record where all financial transactions of a business are initially recorded, often before posting to ledgers.

Chronological Record

An organized account of events, transactions, or entries in the order they occurred over time.

Accounts Receivable

Payments yet to be received by a company from customers for goods or services already provided.