Refer to the Following Graph to Answer the Question

question 36

Multiple Choice

Refer to the following graph to answer the question: Suppose price rises from $90 to $110.Total revenue moves in the ________ same,opposite) direction as the dominant effect.In this case,total revenue ____________ increases,decreases,stays the same) because the quantity effect is _________ larger than,smaller than,the same as) the price effect.

• A)same; increases; larger than
• B)same; decreases; smaller than
• C)same; decreases; larger than
• D)opposite; increases; larger than
• E)opposite; decreases; smaller than

---

Definitions:

Acquisition Cost

The total cost associated with acquiring an asset, including purchase price, installation fees, and other expenses necessary to prepare the asset for its intended use.

Entire Business

Refers to the complete operations and assets of a company as a single entity.

Loss On Disposal

The financial loss incurred when an asset is sold or disposed of for less than its carrying amount.

Financial Statements

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