Moving downward and to the right along a linear demand curve,we know that total revenue
A)first increases,then decreases.
B)first decreases,then increases.
C)always increases.
D)always decreases.

Question

Quizplus · Accepted Answer

As you move downward and to the right along a linear demand curve, the price decreases and quantity increases. Initially, total revenue increases because the percentage increase in quantity demanded is greater than the percentage decrease in price (elastic range). Eventually, total revenue decreases as the percentage decrease in price outweighs the percentage increase in quantity demanded (inelastic range).

Moving Downward and to the Right Along a Linear Demand