We Can Tell That Demand Is Elastic as Price Falls

question 85

Multiple Choice

We can tell that demand is elastic as price falls between point a and point bin Exhibit 5­6 because

• A)quantity demanded is increasing
• B)total revenue is increasing
• C)total revenue is decreasing
• D)total revenue is unchanged
• E)the demand curve slopes downward

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Definitions:

Consolidated Bonds Payable

The total amount of bonds owed by both a parent company and its subsidiaries as presented in consolidated financial statements.

Proposal

A plan or suggestion put forward for consideration or discussion, especially in a business or formal context.

Coattail Provision

A feature in shareholders' agreements that obliges minority shareholders to join in the sale of a company if the majority shareholders agree to sell their shares.

Restricted Shares

Shares of stock that are granted to an employee but come with restrictions on sale and transfer until certain conditions are met.