If an Increase in the Price of a Good Results

question 175

Multiple Choice

If an increase in the price of a good results in an increase in total revenue for the firm,what must the supply of the good be

• A)unit elastic
• B)inelastic
• C)elastic
• D)perfectly elastic

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Definitions:

Costs of Equity

The return that shareholders require for investing in a company's equity, effectively the cost to the company of raising equity capital.

After Tax Debt

The net cost of debt after accounting for the tax deductibility of interest expenses.

Portfolio Beta

Portfolio Beta measures the sensitivity of a portfolio's returns to the returns of the market as a whole, serving as an indicator of its risk relative to the market.

Capital Gains Yield

The price appreciation component of the total return on an investment, excluding any dividends or interest.