There Is NO Total Revenue Test for Price Elasticity of Supply

question 154

Multiple Choice

There is NO total revenue test for price elasticity of supply because:

• A)price and quantity supplied are usually inversely related.
• B)price and quantity supplied are usually positively related.
• C)total revenue will not usually change in the direction of a supply price change.
• D)price and quantity supplied are always negatively related.

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Definitions:

Tax Rate

The rate at which a person or company is taxed by the state.

Unrealized

Referring to profits or losses that have occurred on paper due to changes in the value of assets or investments but have not been actualized through a sale or transaction.

Intercompany Profits

Earnings generated from transactions between divisions or subsidiaries within the same corporation, which may be eliminated in consolidated financial statements.

Inventory

The items a business holds for the main purpose of resale or the raw materials used to produce goods for sale.