-In the Above Figure, at Point B on the Demand

question 41

Multiple Choice

-In the above figure, at point b on the demand curve, a price cut of one dollar will

• A) increase total revenue.
• B) decrease total revenue.
• C) leave total revenue unchanged.
• D) have an indeterminate effect on total revenue.

---

Definitions:

Credit Standards

The set of criteria that lenders use to determine the creditworthiness of borrowers and the terms under which credit will be extended.

Credit Policy

The guidelines a company follows in determining credit terms for its customers, including terms of payment and credit limits.

Collection Policy

A set of procedures a company uses to manage the collection of amounts due from its customers.

Cash Payment

A transaction in which a payment is made using physical currency or through a digital medium that represents immediate funds.