When a Firm Raises the Price of Its Product,what Happens

question 208

Multiple Choice

When a firm raises the price of its product,what happens to its total revenue?

• A) If demand is elastic, total revenue decreases.
• B) If demand is unit elastic, total revenue increases.
• C) If demand is inelastic, total revenue decreases.
• D) If demand is elastic, total revenue increases.
• E) If demand is unit elastic, total revenue decreases.

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Definitions:

Cash Receipts

The collection of money, including coins, notes, check payments, or money orders, received by a business during a given period.

Internal Control

Internal control comprises the policies and procedures implemented by a company to safeguard its assets, ensure financial reporting accuracy, and comply with laws and regulations.

Principle Of Internal Control

A framework designed to provide reasonable assurance regarding the achievement of objectives in effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations.

Fraud

Fraud is a deliberate act of deception intended for personal gain or to cause a loss to another party, often involving financial transactions.