If a Firm Raises the Price of Its Product,its Total

question 142

Multiple Choice

If a firm raises the price of its product,its total revenue will _____

• A)always increase.
• B)increase only if demand is price inelastic.
• C)increase only if demand is price elastic.
• D)remain constant regardless of the price elasticity of demand.
• E)never increase.

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Definitions:

Services Rendered

Refers to the performance of services or completion of tasks by a company or individual in exchange for payment.

Journal Entry

A record in accounting that represents a transaction and its effect on various accounts, consisting of debits and credits.

Clients Paid

Funds that have been transferred from clients to a company in exchange for services or products.

Common Stock

A type of security that represents ownership in a corporation, granting holders voting rights and a share in the company's profits through dividends.