A Decrease in Total Revenue Will Result If

question 371

Multiple Choice

A decrease in total revenue will result if

• A) demand is inelastic and price decreases.
• B) demand is elastic and price increases.
• C) demand is elastic and price decreases.
• D) demand is unitary elastic and price decreases.

---

Definitions:

Prepaid Rent

Expenses paid in advance for the use of property or equipment that is recorded as an asset until the period it benefits.

Balance Sheet

A financial outline showing the holdings, debts, and the portion belonging to shareholders of a company on a certain date.

Adjustment

Modifications made to financial records to correct errors, align with accounting standards, or reflect changes due to transactions or events.

Fixed Assets

Long-term tangible assets that a firm owns and uses in the production of its income and is not expected to be converted into cash in the short term, such as buildings, machinery, and land.