Under Which of the Following Situations Will Total Revenue Rise

question 180

Multiple Choice

Under which of the following situations will total revenue rise?

• A)If elasticity is > 1 and price falls.
• B)If elasticity is > 1 and price rises.
• C)If elasticity is < 1 and price falls.
• D)If elasticity is = 1 and price falls.

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Definitions:

Parent Company

A corporation that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors.

Forward Trade

A tailor-made agreement for buying or selling an asset at a future moment, based on a price established in the present, and not conforming to standard regulations.

Currencies

Systems of money in general use in particular countries or regions, facilitating trade and economic activities.

Exchange Rate

The value of one currency for the purpose of conversion to another, which determines how much one currency is worth in terms of another.