Which of the Following Is True

question 264

Multiple Choice

Which of the following is true?
i.The demand for a good is elastic if when its price changes,the percentage change in the quantity demanded exceeds the percentage change in price.
ii.Price elasticity of demand equals the percentage change in price divided by the percentage change in the quantity demanded.
iii.If demand is price inelastic,a rise in price leads to a decrease in total revenue.

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

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Definitions:

Salvage Value

The prognosticated worth of an asset at the close of its operational period.

Useful Life

The estimated duration of time that an asset is expected to be productive or useful, beyond which it is likely to be inefficient or obsolete.

Double-declining-balance Method

An accelerated depreciation method that doubles the straight-line depreciation rate and applies it to the undepreciated balance at the start of each period.

Straight-line Method

A method of calculating depreciation for an asset that spreads the cost evenly over its useful life.