An Increase in Price Causes an Increase in Total Revenue

question 244

Multiple Choice

An increase in price causes an increase in total revenue when

• A) demand is elastic.
• B) demand is inelastic.
• C) demand is unit elastic.
• D) All of the above are possible.

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Definitions:

Dividend Yield

An economic indicator that highlights the yearly amount a company distributes in dividends in comparison to its stock price.

Inventory Turnover

A financial metric that measures the rate at which a company sells and replaces its stock of goods over a period, indicating efficiency in sales and inventory management.

Interest Earned

The income received from investing in interest-bearing financial instruments or accounts.

Net Income

The total profit or loss of a business after all expenses, taxes, and costs have been subtracted from total revenue.