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What else can I help you with?
When is demand inelastic?
When a reduction in price results in a decrease in total revenue.
A price decrease will cause total revenue to fall if?
demand is inelastic
When demand is a decrease in price total revenue?
When demand decreases, total revenue typically declines as well. This occurs because a decrease in price usually leads to a reduction in the quantity sold, particularly if the product is elastic. However, if the demand is inelastic, total revenue may remain stable or even increase with a price decrease, as the loss in revenue from lower prices can be offset by a smaller drop in quantity sold. Thus, the relationship between price changes and total revenue depends on the elasticity of demand.
What is the relation between PED and total revenue?
Price Elasticity of Demand (PED) measures how sensitive the quantity demanded of a good is to a change in its price. When demand is elastic (PED > 1), a decrease in price leads to a proportionally larger increase in quantity demanded, resulting in an increase in total revenue. Conversely, when demand is inelastic (PED < 1), a decrease in price results in a smaller increase in quantity demanded, leading to a decrease in total revenue. If demand is unitary elastic (PED = 1), total revenue remains unchanged when prices change.
What is the connection between elasticity and total reveneu?
The connection between elasticity and total revenue lies in how changes in price affect consumer demand. When demand is elastic, a decrease in price leads to a proportionally larger increase in quantity demanded, resulting in higher total revenue. Conversely, if demand is inelastic, a price decrease results in a smaller increase in quantity demanded, causing total revenue to decline. Therefore, understanding the price elasticity of demand helps businesses optimize pricing strategies to maximize total revenue.
When is demand inelastic?
When a reduction in price results in a decrease in total revenue.
A price decrease will cause total revenue to fall if?
demand is inelastic
What happens to the contribution ratio when the components change?
The contribution ratio is the relationship between total sales revenue and total variable costs. If the components change, such as an increase in sales revenue or a decrease in variable costs, the contribution ratio will increase. Conversely, if sales revenue decreases or variable costs increase, the contribution ratio will decrease.
Is the decrease in revenue a debit?
Default balance for revenue is credit balance so to reduce a revenue account it must be something with debit balance so debit is a decrease in revenue.
How does a change in price on a linear demand curve affect total revenue?
on the linear demand curve, demand is elastic at price above the point of unitary elasticity so a price increase will decrease the total revenue.
What causes the EPS to decrease?
Factors that can cause EPS (Earnings Per Share) to decrease include a decrease in net income, an increase in the number of shares outstanding, or dilution from the issuance of new shares or convertible securities. A decrease in revenue or an increase in expenses can also lead to a decrease in EPS.
A decrease in fixed costs with everything else remainig constant?
A decrease in fixed costs, while everything else remains constant, would lead to an increase in overall profitability for a business. Fixed costs are expenses that do not change regardless of the level of production or sales. If these costs decrease, the difference between total revenue and total costs would widen, resulting in higher profits. This situation often allows businesses to invest in other areas or improve their financial stability. R A decrease in fixed costs, while everything else remains constant,would lead to an increase in overall profitability for a business. Fixed costs are expenses that do not change regardless of the level of production or sales. If these costs decrease, the difference between total revenue and total costs would widen, resulting in higher profits. This situation often allows businesses to invest in other areas or improve their financial stability.ixed costs are expenses that do not change regardless of the level of production or sales. If these costs decrease, the difference between total revenue and total costs would widen, resulting in higher profits. This situation often allows businesses to invest in other areas or improve their financial stability.
What will a decrease a revenue and a increase liability?
I can think of nothing that will do that in one transaction. Revenue generally does not effect your liabilities. Revenue is an Owners Equity account and most transactions in revenue effect that, not liabilities. (there is one exception and it is explained later on.)Expenses decrease revenue, which in turn decreases retained earnings which effects owners equity.Dividends Paid decrease retained earnings, which in turns also effects owners equity.The only time any "revenue" has an effect on liabilities is if it is an "unearned" revenue. An unearned revenue is a liability, however, it "increases" your liabilities and increases your assets at the same time. Once the unearned revenue is "earned" it then increases your "revenue" and you decrease your liability.
What was the percentage decrease in unit 2 revenue from Q1 to Q2?
To determine the percentage decrease in unit 2 revenue from Q1 to Q2, you would subtract the Q2 revenue from Q1 revenue, divide the result by the Q1 revenue, and then multiply by 100. The formula is: (\text{Percentage Decrease} = \left(\frac{\text{Q1 Revenue} - \text{Q2 Revenue}}{\text{Q1 Revenue}}\right) \times 100). Without specific revenue figures, I can't provide an exact percentage. Please provide the revenue amounts for Q1 and Q2 for a precise calculation.
How do you calculate total revenue?
To calculate total revenue you simply multiply the quantity by the price. Total revenue includes expenses; therefore, total revenue isn't the same as profit.
What was Clark county gaming revenue in 2008?
Clark County gaming revenue for 2008 was $9,797.0 million. This reflected a 9.9 percent decrease over the 2007 total of $10,868.5 million. In 2009 we expect gaming revenues to decrease another 2.5 percent for a total of $9,550.0 million by year end. In 2010 we expect to see an increase of 3.0 percent for a total "gaming win" of $9,840.0 million
Does an increase in revenue always lead to an increase in equity?
Incresea of revenue increases the equity only if business earn profit but if rising revenues are also backed by rising expenses and in the end if company earning loss then it will cause in decrease in equity.
