Total Revenue Is More Likely to Rise When the Price

question 92

Multiple Choice

Total revenue is more likely to rise when the price rises if

• A)there are few substitutes for the good.
• B)a high proportion of income is spent on the good.
• C)some extended period of time passes.
• D)all of the above
• E)none of the above

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Definitions:

Hedge Accounting

An accounting method that records the offsetting positions of a financial hedge and its underlying asset together to reduce volatility in financial statements.

Speculative Investments

Investments with a high risk of loss but also the potential for significant rewards, often characterized by high volatility.

GAAP Accounting

A set of accounting standards and principles designed to ensure consistency, fairness, and accuracy in financial reporting.

Derivatives

Financial instruments whose value is derived from the value of an underlying asset, index, or security.