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:

Net Income

The total profit of a company after all expenses, including taxes and operating costs, are deducted from total revenues.

Total Expenses

The sum of all costs and expenses incurred by a business or individual in a specified period.

Dividends Declared

The amount of earnings a company decides to distribute to its shareholders as a payout.