If a Firm Raises the Price of Its Product,its Total

question 142

Multiple Choice

If a firm raises the price of its product,its total revenue will _____

• A)always increase.
• B)increase only if demand is price inelastic.
• C)increase only if demand is price elastic.
• D)remain constant regardless of the price elasticity of demand.
• E)never increase.

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Definitions:

Average Inventory

An accounting metric that calculates the median value of inventory within a given period, which helps in understanding inventory levels over time.

Accounts Payable

Liabilities or money owed by a company to its creditors for goods and services received but not yet paid for.

Maturity Matching

A financial strategy that involves matching the maturity dates of assets and liabilities to minimize the risk of liquidity issues.

Working Capital Financing

Short-term loans or other credit products used by companies to finance their daily operations and manage short-term liquidity.