Holding All Other Forces Constant,if Decreasing the Price of a Good

question 25

Multiple Choice

Holding all other forces constant,if decreasing the price of a good leads to an increase in total revenue,then the demand for the good must be

• A)unit elastic.
• B)inelastic.
• C)elastic.
• D)None of the above is correct because a price decrease never leads to an increase in total revenue.

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Definitions:

Par Value

The nominal or face value of a stock or bond, representing the value stated in the corporate charter or on the certificate.

Common Stock

An equity instrument indicating ownership in a company, which provides the holder with voting privileges and a share in the company's profits through dividends.

Stockholders' Equity

The portion of a company's capital that is owned by its shareholders, calculated as the company's total assets minus its total liabilities.

Cumulative

Describes something that increases or accumulates over time, often used in the context of investments or financial statements.