When Demand Is ________, Increases in Price Result in Increases

question 151

Multiple Choice

When demand is ________, increases in price result in increases in total revenues, while decreases in price result in decreases in total revenue.

• A) elastic
• B) inelastic
• C) flexible
• D) supply-driven
• E) cross-elastic

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Definitions:

Dividends In Arrears

Dividends on preferred stock that have not been paid by the declaration date but are still owed to shareholders.

Non-Cumulative

Pertaining to preferred stock, which does not accumulate unpaid dividends if they are not declared.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, often with fixed dividends.

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing corporation, reducing the number of shares outstanding in the market.