If the Price of Good X Rises and the Demand

question 94

Multiple Choice

If the price of good X rises and the demand for good X is inelastic, then the percentage fall in quantity demanded is __________ the percentage rise in price, and total revenue __________.

• A)greater than; rises
• B)less than; falls
• C)equal to; remains constant
• D)greater than; falls
• E)none of the above

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Definitions:

Withdraws

The action of taking money out of an account, or removing capital from a business by its owners.

Personal Use

Personal use refers to the utilization of property, assets, or services for individual rather than business or commercial purposes.

Journal Entry

A record of financial transactions in the accounting books of a business, showing the accounts affected and the amounts of debits and credits.

Purchase on Account

A transaction in which a buyer acquires goods or services with an agreement to pay the supplier at a later date, typically billed through an invoice.