Figure 5-10 -Refer to Figure 5-10.When Price Falls from $50 to $40,demand

question 69

Multiple Choice

Figure 5-10

-Refer to Figure 5-10.When price falls from $50 to $40,demand is

• A) inelastic, since total revenue decreases from $8,000 to $5,000.
• B) inelastic, since total revenue increases from $5,000 to $8,000.
• C) elastic, since total revenue increases from $5,000 to $8,000.
• D) unit elastic, since total revenue does not change.

---

Definitions:

Annual Growth Rate

The rate of growth or decline in a specific variable over the course of a year.

Fiscal Quarters

Divisions of a financial year into four parts, used for accounting purposes and financial reporting by companies.

Nominal Interest Rate

The interest rate before adjustments for inflation, representing the rate that banks and other lenders quote.

Effective Interest Rate

The actual interest rate when compounding is accounted for, expressed as an annual rate.