Figure 5-9

-Refer to Figure 5-9.If price increases from $10 to $15,total revenue will
A) increase by $20, so demand must be inelastic in this price range.
B) increase by $5, so demand must be inelastic in this price range.
C) decrease by $20, so demand must be elastic in this price range.
D) decrease by $10, so demand must be elastic in this price range.

Question

Figure 5-9
 
-Refer to Figure 5-9.If price increases from $10 to $15,total revenue will
A) increase by $20, so demand must be inelastic in this price range. 
B) increase by $5, so demand must be inelastic in this price range. 
C) decrease by $20, so demand must be elastic in this price range. 
D) decrease by $10, so demand must be elastic in this price range.

Quizplus · Accepted Answer

When price increases from $10 to $15, total revenue increases by $20, which means that demand is inelastic in this price range.

Figure 5-9 -Refer to Figure 5-9.If Price Increases from $10 to $15,total