If a Price Decrease Results in an Increase in Total

question 121

Multiple Choice

If a price decrease results in an increase in total revenue, then demand is

• A)inelastic.
• B)unit elastic.
• C)perfectly inelastic.
• D)equal to supply.
• E)elastic.

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Definitions:

Premium

The amount paid for an insurance policy or an additional amount above the nominal or face value of securities.

Par Value

The face value of a bond or stock as stated by the issuer, which does not necessarily reflect its market value.

Yield To Maturity

The expected complete return on a bond when retained through its entire lifespan.

Bond Rating

An assessment of the credit quality of a bond, typically issued by a rating agency, which indicates the likelihood of the bond issuer defaulting.