6. Relations
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If revenues are not increasing or decreasing, are they zero?
See solution.
Let's discuss what happens during each of the segments.
Segment | What's happening? |
---|---|
A to B | Between A and B, the graph points upwards, which is to say the graph is increasing. This means that revenues are increasing. |
B to C | Between B and C, the graph points downwards, which is to say the graph is decreasing. Sales, although still positive, are now going down as time passes. |
C to D | The sales have now started to increase again. We can also see that the segment is somewhat steeper, so revenues are also growing at a somewhat faster rate than before the decline between B and C. |
D to E | Between D and E, the graph is horizontal. This means that revenues are not zero, but they are also no growing during this time. Revenues are at a fixed level for this period. |
E to F | The graph is increasing again but it's not as steep as the section between A and B or the section between C and D. This means that the revenues do not grow as fast as they did from A to B or from C to D. |