A Price Cut Will Increase the Total Revenue a Firm

question 30

Multiple Choice

A price cut will increase the total revenue a firm receives if the demand for its product is:

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

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Definitions:

Liabilities Decreased

A reduction in the obligations or debts that a company owes to others, which can improve its financial position.

Retained Earnings

The residual net earnings available to the business following the payout of dividends to its investors.

Auto Repair Shop

An auto repair shop is a business establishment dedicated to the maintenance and repair of automobiles, offering services such as mechanical and electrical repair, bodywork, and routine maintenance.

Journal Entries

The recordings of financial transactions in a company's accounting system, typically including a date, description, and affected accounts.