Which of the Following Correctly Comments on the Following Statement

question 67

Multiple Choice

Which of the following correctly comments on the following statement? "The only way to increase the revenue from selling a product is to increase the product's price."

• A)It is not true. Revenue will increase as the price of the product increases only if demand is elastic.
• B)This statement is not true. Revenue will increase as the price of the product increases only if demand is inelastic.
• C)The statement is true.
• D)This statement is not true. Revenue will decrease as the price of the product increases because quantity demanded will fall.

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Definitions:

Treasury Bonds

Long-term government debt securities with maturity dates typically beyond 10 years, regarded as low-risk investments.

Default Risk

The probability that a borrower will be unable to meet the required payments on their debt obligations.

Maturity Risk

The risk associated with the fixed term of securities; the risk that bond prices will decrease because of rising interest rates as maturity approaches.

Inflation Differences

The variance in inflation rates across different countries or regions, affecting purchasing power and economic decisions.