If a Rising Price Leads to Falling Revenues, Then Demand

question 199

True/False

If a rising price leads to falling revenues, then demand is elastic.

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Definitions:

Cash Inflows

Cash inflows refer to the money received by a business from various sources, including sales revenues, investment income, and financing.

IRR

The Internal Rate of Return, a financial metric used to estimate the profitability of investments by calculating the interest rate at which the net present value of all cash flows (both positive and negative) from a project equal zero.

Investment

Allocating resources, usually money, with the expectation of generating an income or profit.

Cash Flows

The total amount of money being transferred in and out of a business, particularly in relation to liquidity.