The Manager of a Company Notices That the Company's Total

question 22

Multiple Choice

The manager of a company notices that the company's total revenue would increase if the manager raises the price of the company's product. Accordingly, the manager can assert that the demand for the company's product is:

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

---

Definitions:

Investment Opportunity

An option to allocate resources with the expectation of generating a return or profit in the future.

Turnover

In business, refers to the rate at which employees leave a company and are replaced by new hires; can also refer to the total sales in a given period.

Turnover

A financial metric indicating the rate at which a company's inventory is sold and replaced over a period.

Minimum Required Rate

Typically refers to the minimum rate of return on an investment that a manager or investor deems acceptable, taking into account risk and alternative investments.