Remembering That Demand Elasticity Is Defined as the Percentage Change

question 33

Multiple Choice

Remembering that demand elasticity is defined as the percentage change in quantity divided by the percentage change in price,if price decreases and,in percentage terms,quantity rises more than price has dropped,total revenue will

• A)increase.
• B)decrease.
• C)remain the same.
• D)either increase or decrease.

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Definitions:

Stock Dividend

A dividend payment made to shareholders in the form of additional shares of the company's stock, rather than cash.

Retained Earnings Statement

A financial report detailing the variations in retained profits over a definite time frame.

Depreciation Expense

The allocation of the cost of tangible assets over their useful lives as an expense to reflect their usage and wear and tear.

Stock Dividend

Additional shares are issued to shareholders by a corporation as a payment, rather than giving out cash.