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

question 15

Multiple Choice

If a firm's total revenue DECREASES when the price of its product is reduced from $80 to $40, the demand for this product between these two prices is:

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

Understand the characteristics and implications of different contract terms in commercial transactions.

Identify the rights and obligations of parties within various types of sales contracts.

Define and distinguish between sale-on-approval, sale-or-return, and goods-in-bailment contracts.

Discuss the legal consequences of void, voidable, and valid titles in sales transactions.

---

Definitions:

Retained Earnings

Retained earnings refer to the portion of a company's profits that are kept or retained within the company for reinvestment or to pay debt, rather than being paid out as dividends.

Dividend Declarations

Official announcements by a company's board of directors to pay dividends to shareholders, specifying the amount and the payment date.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.

External Auditor

An independent party that reviews an organization's financial statements to ensure accuracy and compliance with accounting standards.