Figure 5-6 -Refer to Figure 5-6.If the Price Decreased from $18 to Decreased

question 17

Multiple Choice

Figure 5-6

-Refer to Figure 5-6.If the price decreased from $18 to $6,total revenue would

• A) increase by $1,200, and demand is elastic between points A and C.
• B) increase by $800, and demand is elastic between points A and C.
• C) decrease by $1,200, and demand is inelastic between points A and C.
• D) decrease by $800, and demand is inelastic between points A and C.

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Definitions:

Adjusting Entries

Journal entries made at the end of an accounting period to allocate revenue and expenses to the period in which they actually occurred.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate revenue and expenses to the appropriate periods.

December Rent

A specific expense related to the leasing of property or space that is due in the month of December.