When Price Was 10,quantity Demanded Was 50

question 58

Multiple Choice

When price was 10,quantity demanded was 50.When price decreased to 8,quantity demanded increased to 60.Therefore,when price decreased,total revenue

• A) decreased from 500 to 480, indicating that demand is inelastic.
• B) decreased from 500 to 480, indicating that demand is elastic.
• C) increased from 480 to 500, indicating that demand is inelastic.
• D) increased from 480 to 500, indicating that demand is elastic.

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Definitions:

Customer Accounts

Accounts maintained by a vendor detailing individual transactions with customers over a period, showing credits, debits, and balances.

Controlling Account

A general ledger account that summarizes and controls the balance of all subsidiary accounts related to it, typically used for accounts receivable and accounts payable.

Subsidiary Ledger

A detailed ledger containing individual accounts that support figures on the general ledger, often used for accounts receivable, accounts payable, etc.

Merchandise Inventory

Goods that a company owns and intends to sell as part of its primary business operations, valued either at cost or market value on the balance sheet.