Assume a Product Has an Inelastic Demand Curve

question 135

True/False

Assume a product has an inelastic demand curve. If the producer of the good raises the price of the product, that producer's total revenue will decrease.

---

Definitions:

EBIT

Earnings Before Interest and Taxes; a measure of a company's profitability that excludes interest and income tax expenses.

EPS

Earnings Per Share - a company's profit divided by its number of outstanding shares, indicating the profitability on a per-share basis.

Debt

Money that is owed or due to be paid to creditors.

Capital Structure

The mix of various types of debt and equity that a company uses to finance its operations.