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:

Credit Sales

Sales made by a business where payment is deferred to a later date, typically allowing the buyer to purchase goods or services on credit.

Variable Operating

Expenses associated with the operation of a business that vary with the level of production or sales, such as raw materials and direct labor costs.

Merchandise Inventory

The total of all goods held by a company that are ready for sale, typically used in retail and wholesale operations.

Direct Labour Budget

A direct labour budget estimates the total labor cost and number of labor hours required for production in a given period, based on forecasted sales and production levels.