Assume the Demand Function for SeatComfy's Table Chairs Is Q

question 22

Multiple Choice

Assume the demand function for SeatComfy's table chairs is Q = 5,000 - 25P + 4I +10P_A - 15P_T.Moreover,assume that currently P = 10,P_A = 15,I = 500,P_T = 100.Which of the following is true?

• A)If SeatComfy increases its price by 1 percent,sales as well as total revenues will increase.
• B)If SeatComfy decreases its price by 1 percent,sales will increase,while total revenues will decrease.
• C)If SeatComfy increases its price by 1 percent,sales will decrease,while total revenues will increase.
• D)If SeatComfy increases its price by 1 percent,sales as well as total revenues will decrease.

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Definitions:

Semiannually

Occurs twice yearly or every six months interval.

Debt Investments-HTM

Acronyms for "Held-To-Maturity," these are debt investments that a company intends and is able to hold until they mature.

Long-Term Investments-Trading

Long-term investments-trading refers to the purchase of securities with the intention of holding them for an extended period to benefit from their long-term appreciation, dividends, or interest earnings.

Bonds

Fixed-income securities that represent a loan made by an investor to a borrower, typically corporate or governmental.