When Demand Is ______, an Increase in Price ______ Total

question 154

Multiple Choice

When demand is ______, an increase in price ______ total revenue.

• A) inelastic; raises
• B) inelastic; lowers
• C) unit elastic; raises
• D) elastic; raises

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Definitions:

Outside Supplier

An external entity that provides goods or services to a company, usually part of the supply chain.

Transfer Price

The cost applied to products or services exchanged between units or affiliates within the same corporation.

Variable Expenses

Costs that change in proportion to the activity or volume of production in a business.

Selling Costs

Expenses incurred directly from the sale of a product or service, including marketing, advertising, and sales personnel expenses.