Which of the Following Statements Is INCORRECT

question 78

Multiple Choice

Which of the following statements is INCORRECT?

• A) If a firm decreases the price of its product, its total revenue must decrease.
• B) The own price elasticity of demand is constant at all points along a linear demand curve.
• C) As the price of X falls and we move down an individual's demand curve for X, the money income of the individual also changes.
• D) None of the statements is correct.

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Definitions:

Nominal Interest Rate

The rate of interest before adjustment for inflation, representing the face value of borrowing or lending.

Interest Rate

An interest rate is the percentage at which interest is paid by borrowers for the use of money that they borrow from a lender.

Strip Bond

A debt security that is derived from the coupon and principal payments of a bond, which are separated ("stripped") and sold as individual zero-coupon bonds.

Compounded Semi-Annually

Interest calculated on the principal and previously earned interest twice a year.