If Sam Wants to Increase Her Total Revenue from Her

question 45

Multiple Choice

If Sam wants to increase her total revenue from her sales of flowers and she knows that the demand for flowers is price elastic, she should

• A) raise her price because she knows that the percentage decrease in the quantity demanded will be smaller than the percentage increase in price.
• B) lower her price to increase the demand and shift the demand curve rightward.
• C) raise her price because she knows that the quantity demanded will also increase.
• D) lower her price because she knows that the percentage increase in the quantity demanded will be greater than the percentage decrease in price.

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Definitions:

Budgeted Purchases

The estimated amount of purchases a company plans to make in a future period, often part of a budgeting process.

Budgeted Ending Inventory

The estimated value or quantity of inventory that a company plans to have on hand at the end of a financial period.

Budgeted Beginning Inventory

The projected inventory level at the start of a period, based on anticipated costs and demand.

Sales Budget

A detailed forecast of a company's sales, outlining expected sales volume and revenues for a specific period.