What Occurs When an Increase in Sales Exactly Offsets a Decrease

question 16

Multiple Choice

What occurs when an increase in sales exactly offsets a decrease in price so that total revenue remains exactly the same?

• A) highly elastic demand
• B) fixed elasticity
• C) inelastic demand
• D) unitary elasticity

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Definitions:

Beta

A measure of a stock's volatility in relation to the overall market.

Regression Equation

A mathematical formula used to predict a value of a dependent variable based on the values of one or more independent variables, often utilized in statistical analysis for forecasting and prediction.

Profits

The financial benefit attained when the revenue generated from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Moving Average Model

A statistical method used in forecasting that calculates the average of a series of data points over specific intervals to smooth out short-term fluctuations.