If in the Short Run the Demand for Mass Transit

question 215

Multiple Choice

If in the short run the demand for mass transit is inelastic and in the long run the demand is elastic, then a price

• A)increase will decrease total revenue in the short run but increase total revenue in the long run.
• B)increase will increase total revenue in the short run but decrease total revenue in the long run.
• C)decrease will increase total revenue in the short run but decrease total revenue in the long run.
• D)decrease will decrease total revenue in the short run and decrease total revenue in the long run.

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Definitions:

Depreciated Equipment

Equipment whose value has been reduced over time due to wear and tear or obsolescence, reflecting its reduced utility.

Bonds Payable

Long-term liabilities representing the amount a corporation or government is obligated to repay bondholders, including principal and interest.

Indirect Method

An accounting procedure used in cash flow statements to adjust net income for changes in non-cash items and cash operating expenses.

Operating Activities

Business activities directly related to the production, sale, and delivery of a company's products or services, reflected in its cash flow.