If Total Revenue Goes Down When Price Falls, the Price

question 16

Multiple Choice

If total revenue goes down when price falls, the price elasticity of demand is said to be:

• A) price inelastic.
• B) unit price elastic.
• C) price elastic.
• D) positive.

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Definitions:

Cost of Equity

The return that investors expect for investing in a company's equity, representing the compensation for the risk taken.

Cost of Debt

The effective rate that a company pays on its borrowed funds, which can include loans, bonds, and other forms of debt.

Debt/Equity Ratio

This ratio demonstrates the equity to debt proportion in the context of financing company assets.