If the Total Revenue Received by Sellers of DVDs Increases

question 370

Multiple Choice

If the total revenue received by sellers of DVDs increases by 20 percent when price increases by 10 percent, then demand for DVDs is

• A) perfectly elastic.
• B) unitary elastic.
• C) inelastic.
• D) elastic.

---

Definitions:

Debt-equity Ratio

A gauge of how shareholders' equity and debt proportionately finance a company’s assets.

Taxes

Mandatory monetary payments or fees imposed by the government on people or organizations to finance public spending.

Bankruptcy Claims

Financial demands made by creditors against a debtor who has declared bankruptcy.

Debt/Equity Ratio

The financial ratio that illustrates the use of shareholders' equity versus debt in funding company assets.