There Is No Total Revenue Test for Price Elasticity of Supply

question 93

Multiple Choice

There is no total revenue test for price elasticity of supply because:

• A) price and quantity are inversely related.
• B) price and quantity are usually directly related.
• C) total revenue will usually change in the direction of a supply price change.
• D) both B and C are true.

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Definitions:

Cost Principle

An accounting principle that states all goods and services purchased by a business should be recorded at their cost price, rather than their current market value.

Economic Data

Economic data refers to quantitative information concerning the economy, which includes statistics on inflation, employment, GDP, and market transactions.

Yen

The official currency of Japan, represented by the symbol ¥.

Prepaid Expenses

Payments made for goods or services to be received in the future, considered an asset because they provide future economic benefits to the company.