Which of the Following Is a True Statement

question 118

Multiple Choice

Which of the following is a true statement?

• A) If demand is inelastic and the price increases, the total revenue will decrease.
• B) If demand is inelastic and the price increases, the total revenue will increase.
• C) If demand is elastic and the price increases, the total revenue will increase.
• D) If demand is elastic and the price decreases, the quantity demanded will decrease.

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Definitions:

Notes Payable

Written promises to pay a specific sum of money on a certain date, usually including interest.

Short Form Prospectus Distribution

A simplified process for companies to distribute securities, utilizing a shorter prospectus that provides essential information without excessive detail.

Preliminary Prospectus

An initial document offering securities for sale, disclosing important information but subject to amendment.

Seasoned Equity Offering (SEO)

A process whereby a company that is already publicly traded issues additional shares to raise capital, often indicating established operational history.