In Which of the Following Instances Does Total Revenue Increase

question 1

Multiple Choice

In which of the following instances does total revenue increase?

• A)price falls and supply is inelastic
• B)price falls and demand is unit-elastic
• C)price rises and demand is inelastic
• D)price rises and demand is elastic
• E)price falls and demand is perfectly inelastic

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Definitions:

Treasury Stock

Shares of a company's own stock that it has repurchased from shareholders and can hold, reissue, or retire.

Common Stock

Represents ownership shares in a corporation, giving shareholders voting rights and a residue claim on corporate earnings in the form of dividends.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to investors, which are reinvested in the business.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenues.