The Total Revenue Test Says

question 176

Multiple Choice

The total revenue test says
i.Demand is elastic if a decrease in price results in an increase in total revenue.
ii.Total revenue is maximized when demand is elastic.
iii.Total revenue is minimized when demand is unit elastic.

• A) i only
• B) i and ii
• C) ii and iii
• D) i, ii and iii
• E) ii only

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Definitions:

Long-Term Liabilities

Debts or obligations that are not due for settlement within one year and are often used to finance the purchase of long-term assets.

Indirect Method

A way of calculating cash flows from operating activities in the cash flow statement by adjusting net income for changes in balance sheet accounts.

Cash Receipts

Represents the total cash inflows from transactions, including sales and asset dispositions, during a specific period.

Cash Payments

Financial transactions that involve the transfer of cash to settle a debt or purchase goods and services.