If the Demand for Widgets Is Inelastic, Revenues Will ______

question 7

Multiple Choice

If the demand for widgets is inelastic, revenues will ______ if the price of widgets increases.

• A)increase
• B)fall
• C)remain the same
• D)one cannot tell what will happen to revenues without specific elasticity numbers

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Definitions:

Gross Method

An accounting practice where invoice transactions are recorded at their full, or gross, amounts before any discounts are applied.

Periodic Inventory Method

An accounting approach where inventory is physically counted at specific intervals to determine the cost of goods sold.

Merchandise Purchase

Refers to the acquisition of goods to be sold in the normal course of business.