If a Firm's Total Revenue INCREASES When the Price of Its

question 10

Multiple Choice

If a firm's total revenue INCREASES when the price of its product is reduced from $90 to $50, the demand for this product between these two points is:

• A) inelastic.
• B) unitary elastic.
• C) elastic.
• D) Cannot tell from what is given.

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Definitions:

Adjusting Journal Entries

Adjusting Journal Entries are made in an accounting system to adjust income and expense accounts so that they reflect the correct values for the accounting period.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those presented on a bank statement.

Cancelled Cheques

Cheques that have been processed by the bank, serving as proof that a payment was made.

Segregation of Duties

A risk management practice that divides responsibilities among different individuals or teams to reduce the risk of error or fraud.