_____ Occurs When an Increase in Sales Exactly Offsets a Decrease

question 161

Multiple Choice

_____ occurs when an increase in sales exactly offsets a decrease in price so that total revenue remains exactly the same.

• A) Inelastic demand
• B) Functional elasticity of demand
• C) Unitary elasticity
• D) Highly elastic demand
• E) Fixed elasticity

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Definitions:

Finished Goods Inventory

The total value of all completed products that have not yet been sold by a company.

Cash Collections

The process of gathering all cash receipts from sales or other sources during a particular period.

Merchandise Purchases Budget

A financial plan that estimates the cost of goods a company needs to purchase to meet its sales goals.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period of time, primarily used to assess whether a company has sufficient cash to fulfill its operations and financial commitments.