Figure 5-5 -Refer to Figure 5-5.When Price Falls from $40 to $30,what

question 130

Multiple Choice

Figure 5-5

-Refer to Figure 5-5.When price falls from $40 to $30,what do we know about demand

• A)It must be elastic since total revenue increases from $8000 to $9000.
• B)It must be inelastic since total revenue increases from $8000 to $9000.
• C)It must be inelastic since total revenue decreases from $9000 to $8000.
• D)It must be elastic since total revenue decreases from $9000 to $8000.

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Definitions:

Accounts Payable

Liabilities of a business that are owed to creditors for goods or services purchased on credit.

Operating Activity

Transactions that relate to the primary business operations, such as revenue from sales and expenses for materials and labor.

Supplies

Items used in the operation of a business that are not directly tied to the products or services offered, such as office supplies.

Accounts Payable

This refers to the amounts owed by a company for goods or services that have been received but not yet paid for.