When Price Rises, Total Revenue

question 47

Multiple Choice

When price rises, total revenue

• A)always rises because the quantity purchased does not change.
• B)may rise or fall, depending on whether the quantity purchased rises or falls.
• C)always falls because the quantity purchased always falls.
• D)may rise or fall, depending on how much the quantity purchased falls.
• E)may rise or fall, depending on whether the quantity purchased changes.

---

Definitions:

Commission

Commission refers to a fee paid for services or a percentage of sales earned by sales employees or agents on the transactions they facilitate.

Cash Dividends

A form of profit distribution by a corporation to its shareholders, paid in cash from the company's current or retained earnings.

Trading Securities

Financial assets that are purchased by an entity not for long-term investment but rather with the intention to sell them in the near term to make a profit.

Fair Value

The estimated market value of an asset or liability based on current market prices or valuations.