If Demand Is Inelastic and Price Is Raised

question 124

Multiple Choice

If demand is inelastic and price is raised

• A)quantity demanded will fall and total revenue will fall.
• B)quantity demanded will fall and total revenue will rise.
• C)quantity demanded will rise and total revenue will rise.
• D)quantity demanded will rise and total revenue will fall.

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Definitions:

Petty Cash

A small amount of cash on hand used for minor or incidental expenses within a business.

Normal Balance

The side (debit or credit) of an account that is expected to have a greater balance based on standard accounting practices.

Asset

Resources owned or controlled by a business or individual that are expected to produce economic value or future benefits.

Petty Cash Fund

A small amount of cash kept on hand by a business for making immediate payments for small, incidental expenses.