If Demand Is ________ with Respect to Price, a Price

question 137

Multiple Choice

If demand is ________ with respect to price, a price increase will ________ total revenue.

• A)elastic; increase
• B)inelastic; increase
• C)unit elastic; decrease
• D)inelastic; decrease

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Definitions:

Accounts Payable

Money owed by a business to its suppliers for goods or services received that have not been paid for.

Current Liability

A company's debts or obligations that are due to be paid to creditors within one year.

Shortage Costs

Expenses incurred from not having enough inventory on hand, including lost sales, backorder processing, and dissatisfied customers.

Carrying Costs

Expenses associated with holding or storing inventory, including insurance, storage, depreciation, and opportunity costs.