If the Demand for a Good Is Price Inelastic,a Decrease

question 98

Multiple Choice

If the demand for a good is price inelastic,a decrease in total revenue from the good would result from a(n)

• A)increase in price
• B)decrease in quantity demanded
• C)favorable shift in tastes and preferences
• D)decrease in price
• E)increase in consumers' incomes

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects money owed from its customers over a period.

Average Collection Period

The average amount of time that it takes for a business to receive payments owed by its clients in terms of receivables.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.

Inventory Turnover

Inventory Turnover is a measure of how many times a company's inventory is sold and replaced over a period.