Use the following to answer question:
-(Figure: Demand for Notebook Computers)Use Figure: The Demand for Notebook Computers.The change in total revenue resulting from a change in price from P to T suggests that demand is:
A)inelastic.
B)price-elastic.
C)price-inelastic.
D)price unit-elastic.

Question

Use the following to answer question: 
-(Figure: Demand for Notebook Computers)Use Figure: The Demand for Notebook Computers.The change in total revenue resulting from a change in price from P to T suggests that demand is:
A)inelastic. 
B)price-elastic. 
C)price-inelastic. 
D)price unit-elastic.

Quizplus · Accepted Answer

The change in total revenue resulting from a change in price from P to T suggests that demand is price-elastic because the change in price caused a proportionately larger change in quantity demanded, resulting in a decrease in total revenue.

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