If Demand Is Inelastic and the Price Falls,the Total Revenue

question 120

Multiple Choice

If demand is inelastic and the price falls,the total revenue

• A) rises.
• B) falls.
• C) remains constant.
• D) might rise, fall, or remain constant.
• E) becomes negative.

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Definitions:

Accounts Payable

Liabilities owed by a business to creditors for goods and services purchased on credit.

Work in Process

Inventory that includes the cost of raw materials, labor, and manufacturing overhead for products that are in various stages of production but not yet complete.

Finished Goods

Finished goods that are prepared and available to be bought by customers.

Work in Process Inventory

Inventory that is in the process of being manufactured but is not yet complete.