If Demand Is Unit Elastic,a Price Reduction Will _____

question 176

Multiple Choice

If demand is unit elastic,a price reduction will _____

• A)increase revenues.
• B)reduce revenues.
• C)reduce total cost.
• D)have no effect on revenues.
• E)increase profits.

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Definitions:

Revenues

The full extent of revenue garnered from the commercial activities that are at the core of a company’s operational agenda, particularly through goods or services.

Assets

Resources owned by a company that have economic value and can be used to meet its future obligations.

Liabilities

are legal financial debts or obligations that arise during the course of business operations.

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the ownership interest of shareholders or partners.