If the Demand for a Product Is Elastic, Then

question 220

Multiple Choice

If the demand for a product is elastic, then

• A)a higher tax on the product will generate more tax revenue.
• B)a higher tax on the product will generate less tax revenue.
• C)total revenue will decrease as price decreases.
• D)total revenue will remain constant as price increases.

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Definitions:

Cash Sales

Transactions where payment is made in cash at the time of purchase.

Monthly

Pertaining to or calculated for a period of one month.

Subsidiary Ledger

A secondary ledger containing detailed information to support accounts listed in the general ledger, such as accounts receivable or payable details.