If an Increase in Price Leads to a Decrease in Total

question 66

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:

Cost Of Capital

The profit percentage a firm has to secure on its investments to uphold its market valuation and lure funding.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock.

Tax Rate

The magnitude of tax imposition by the government on the revenue streams of individuals or enterprises.