When Demand Is Elastic

question 44

Multiple Choice

When demand is elastic

• A) changes in price and changes in total revenue move in the same direction.
• B) there is no relationship between changes in price and changes in total revenue.
• C) changes in price and changes in total revenue move in opposite directions.
• D) for any change in price, total revenue will not change.

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Definitions:

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Maker

In financial terms, the party that issues or creates an instrument, such as a check or promissory note, effectively promising to pay the amount specified.

Credit Sales

refers to sales in which the buyer is permitted to pay at a later date, commonly used in business to business transactions.

Specific Customers

Refers to the particular group or segment of customers targeted by a business for its products or services.