If the Price of a Product Increases

question 57

Multiple Choice

If the price of a product increases:

• A)the consumer surplus will decrease.
• B)the consumer surplus will increase.
• C)total revenue will increase if demand is price elastic.
• D)total revenue will decrease if demand is price inelastic.

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Definitions:

LIFO

An accounting methodology where the most recently produced or acquired inventory items are recorded as sold first.

Physical Flow

The movement and management of materials and products from procurement through production and delivery to customers.

Inventory

The goods and materials that a business holds for the ultimate goal of resale, representing one of the most important assets for companies dealing with physical products.