If the Price Rises and the Total Amount Consumers Spend

question 51

Multiple Choice

If the price rises and the total amount consumers spend on the good falls, then demand must be

• A)elastic.
• B)inelastic.
• C)perfectly inelastic.
• D)perfectly elastic.

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Definitions:

Sales

Sales encompass the transactions where goods or services are exchanged for money, representing the revenue generated by a business.

Total Assets

Total assets represent the sum of all assets owned by a company, including both current and non-current assets.

ROE

A financial ratio expressing the profitability of a firm in relation to stockholders' equity, used to assess how efficiently a company uses investments to generate profit.

Common Equity

The portion of a company's equity that is held by common shareholders, represented by common stock.