If Total Revenue Increases When Price Increases

question 14

Multiple Choice

If total revenue increases when price increases:

• A) demand is elastic.
• B) demand is inelastic.
• C) demand is unit elastic.
• D) Any of these could be true.

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Definitions:

Debt-To-Equity Ratio

A metric that shows the balance between the amount of a company's assets financed by owners' equity and that financed by debt.

Working Capital

Working capital represents a company's operating liquidity and is calculated as current assets minus current liabilities.

Long-Term Assets

Assets that a company plans to hold for more than one fiscal year, such as buildings, land, and equipment.

Current Ratio

A financial ratio indicating a firm's capacity to settle short-term liabilities using its short-term assets.