Which of the Following Describes a Situation in Which Demand

question 129

Multiple Choice

Which of the following describes a situation in which demand must be elastic?

• A) Total revenue increases by 15 percent when the price of corndogs rises by 15 percent.
• B) Total revenue increases by less than 15 percent when the price of corndogs rises by 15 percent.
• C) Total revenue decreases by more than 15 percent when the price of corndogs rises by 15 percent.
• D) Total revenue increases by $15 when the price of corndogs rises by $15.
• E) Total revenue increases by more than $15 when the price of corndogs rises by $15.

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Definitions:

Direct Method

A way of preparing the cash flow statement where actual cash receipts and payments are reported, rather than adjusting net income.

Net Cash Flow

The difference between a company's cash inflows and outflows in a given period.

Operating Activities

Activities that relate directly to the primary revenue-producing operations of an organization, such as sales and service delivery.

Fixed Asset

Long-term tangible property that a company owns and uses in its operations to generate income, such as buildings, machinery, and equipment.