Figure 7-12 Refer to Figure 7-12. When Price Falls from $50 to from $50

question 4

Multiple Choice

Figure 7-12
Refer to Figure 7-12. When price falls from $50 to $40, it can be inferred that demand between those two prices is

• A) inelastic, since total revenue decreases from $8,000 to $5,000.
• B) inelastic, since total revenue increases from $5,000 to $8,000.
• C) elastic, since total revenue increases from $5,000 to $8,000.
• D) unit elastic, since total revenue increases from $5,000 to $8,000.

---

Definitions:

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry.

Accounting Principles

Fundamental guidelines or rules that govern the field of accounting and prescribe how financial transactions should be recorded and reported.

SEC Filings

Documents that publicly traded companies are required to submit to the U.S. Securities and Exchange Commission, providing comprehensive details about the company's financial performance and operations.

Revenue Recognition

An accounting principle that determines the specific conditions under which income becomes recognized as revenue.