If an Increase in Price Results in No Change in Total

question 296

Multiple Choice

If an increase in price results in no change in total revenue, then demand must be

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

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit customers by comparing net credit sales to average accounts receivable.

Credit

An accounting entry that increases liabilities and equity or decreases an asset or expense account.

Note Receivable

A financial asset representing a promise to receive a specific amount of money, plus interest, from another party within a defined time frame.

Return

In finance, it refers to the profit or loss made on an investment over a specified period, expressed as a percentage of the initial investment.