If an Increase in Price Leads to a Decrease in Total

question 64

Multiple Choice

If an increase in price leads to a decrease in total revenue,

• A)demand is elastic.
• B)demand is inelastic.
• C)demand is unit elastic.
• D)there is not enough information to determine the elasticity of demand.

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Definitions:

Management Planning

The process of setting goals, defining strategies, and outlining tasks and schedules to achieve the objectives of an organization.

Selling Prices

The amounts for which goods or services are offered for sale to consumers or other businesses.

Overhead Controllable Variance

The difference between the actual overhead incurred and the overhead costs that should have been incurred, based on a standard or budget, that management had control over.

Budgeted Overhead

The estimated costs for running a business, not directly tied to production but expected to occur within a specific budget period.