If, as Price Increases by 10 Percent, Total Revenue Decreases

question 177

Multiple Choice

If, as price increases by 10 percent, total revenue decreases by 10 percent, demand is

• A)elastic.
• B)unit elastic.
• C)inelastic.
• D)perfectly inelastic.

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Definitions:

Gross Profit

Net sales less cost of goods sold.

Future Revenue

Income that a company expects to receive from its normal business activities in future periods.

Gross Profit

The difference between sales revenue and the cost of goods sold (COGS), indicating the basic profitability of a company's core business operations.

Operating Expenses

Operating expenses are the costs associated with the day-to-day operations of a business, excluding direct production costs, such as rent, utilities, and payroll.