Use the following to answer question(s): Demand, Elasticity, and Total Revenue

-(Exhibit: Demand, Elasticity, and Total Revenue) In Panel (a), which of the following is true?
A) Between points A and M, the price elasticity of demand is elastic.
B) Between points F and A, the price elasticity of demand is inelastic.
C) At any price other than P, total revenue will be greater.
D) All of the above statements are false.

Question

Use the following to answer question(s): Demand, Elasticity, and Total Revenue
 
-(Exhibit: Demand, Elasticity, and Total Revenue) In Panel (a), which of the following is true?
A) Between points A and M, the price elasticity of demand is elastic. 
B) Between points F and A, the price elasticity of demand is inelastic. 
C) At any price other than P, total revenue will be greater. 
D) All of the above statements are false.

Quizplus · Accepted Answer

Without seeing the exhibit, we can deduce that the statements about elasticity and total revenue depend on the specific shape and position of the demand curve, as well as the method used to calculate elasticity (e.g., point elasticity or arc elasticity). Since we cannot verify the specific conditions and outcomes described in options A, B, and C without the visual context of the exhibit, we cannot assume they are correct. Therefore, the safest choice is to consider all the given statements as potentially false.

Use the Following to Answer Question(s): Demand, Elasticity, and Total