Figure 5-10 -Refer to Figure 5-10. If Rectangle D Is Larger Than

question 39

Multiple Choice

Figure 5-10
-Refer to Figure 5-10. If rectangle D is larger than rectangle A, then

• A) demand is elastic between prices P1 and P2.
• B) a decrease in price from P2 to P1 will cause an increase in total revenue.
• C) the magnitude of the percent change in price between P1 and P2 is smaller than the magnitude of the corresponding percent change in quantity demanded.
• D) All of the above are correct.

---

Definitions:

Land Improvements

Enhancements made to a plot of land, such as landscaping, fencing, or sidewalk construction, which increase the land's value and usefulness but may depreciate over time.

Useful Life

The estimated period that an asset is expected to be usable for the purpose it was acquired, important for calculating depreciation.

Asset Retirement Costs

Obligations and expenses associated with the removal and disposal of a long-term asset from service.

Expected Retirement Costs

Projected expenses related to retiring assets, such as decommissioning costs or asset disposals.