What Is the Effect of a 10 Percent Price Increase

question 93

Multiple Choice

What is the effect of a 10 percent price increase on total revenue if elasticity is equal to 1?

• A)Revenue increases by 10 percent.
• B)Revenue increases by less than 10 percent.
• C)Revenue does not change.
• D)Revenue decreases.
• E)Revenue drops to 0.

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Definitions:

Compulsory Share Exchange

A corporate action where a company's shares are acquired in exchange for shares of the acquiring company, typically mandating that all shareholders participate.

Merge

To combine or unite multiple entities, such as companies or datasets, into one integrated whole.

Short-form Merger

A short-form merger is a type of merger that allows a parent company to absorb a subsidiary without the approval of the shareholders of the subsidiary.

Shareholder Approval

The process by which a corporation's shareholders vote on and approve certain corporate actions or decisions.