If the Demand for a Good Is Estimated to Be

question 15

Multiple Choice

If the demand for a good is estimated to be _____, then firms producing the good will experience an increase in total revenue if prices fall.

• A) .05
• B) .75
• C) 1
• D) 2.5

---

Definitions:

Asset Turnover

A measure of how effectively a business is using its assets to generate sales.

Return on Common Stockholders' Equity

A financial ratio that measures the amount of net income returned as a percentage of shareholders' equity, demonstrating the profitability of a company from the perspectives of its equity investors.

Price-Earnings Ratio

The price-earnings ratio (P/E ratio) is a measure used in financial analysis to assess a company's valuation by dividing its current share price by its earnings per share.

Leverage

Using debt to increase the return on an investment.