You Are Reading the Quarterly Financial Report of One of Your

question 212

Multiple Choice

You are reading the quarterly financial report of one of your competitors. You expected to see their total sales revenue decline because they had a large price increase during the quarter. You were certain that the price increase would lead to an equivalently large decrease in their total sales revenue. To your surprise, their total sales revenue actually increased in the quarter. Based on this information, which of the following explanations could explain why the competitor's total sales revenue increased?

• A) The demand for the company's products is inelastic, so total revenue declines when prices are raised.
• B) The demand for the company's products is elastic, so total revenue declines when prices are raised.
• C) The demand for the company's products is elastic, so unit sales increase when prices are raised.
• D) The demand for the company's products is inelastic, so total sales revenue increases when prices are raised.
• E) The demand for the company's products is elastic, so fixed costs increase when prices are raised.

---

Definitions:

Primary Prevention

Strategies and actions taken to prevent the initial occurrence of a disease or injury.

Health Promotion

Activities and policies targeted at enhancing well-being and preventing health problems through encouraging healthy behaviors.

Immunizations

The process of making a person immune or resistant to an infectious disease, typically by the administration of a vaccine.

Preventive Services

Medical services aimed at disease prevention and health promotion to avoid or minimize the impact of disease and disabilities.