You are reading the quarterly financial report of one of your competitors. You expected to see their total sales revenue decline because they had a large price increase during the quarter. You were certain that the price increase would lead to an equivalently large decrease in their total sales revenue. To your surprise, their total sales revenue actually increased in the quarter.
Based on this information, which of the following explanations could explain why the competitor's total sales revenue increased?
A) The demand for the company's products is inelastic, so total revenue declines when prices are raised.
B) The demand for the company's products is elastic, so total revenue declines when prices are raised.
C) The demand for the company's products is elastic, so unit sales increase when prices are raised.
D) The demand for the company's products is inelastic, so total sales revenue increases when prices are raised.
E) The demand for the company's products is elastic, so fixed costs increase when prices are raised.
Question 2
Desirable product images can be created through the use of colors, design, shapes, and textures in packaging.
Indicate whether the statement is true or false
Phonological and Whole-Word Reading
If the needle drops 1 or 2 inches Hg from the normal reading, one of the engine valves is burned or ...
Record the first puff and this final reading for each cylinder. The final readings should all be ...
A fuel-pressure reading does not confirm that there is enough fuel volume for the engine to ...
The expected results of two generations of semiconservative replication
A debt payment of $7500 is due in 24 months. If money is worth 7.2% p.a. compounded quarterly, ...