Figure 5-8
-Refer to Figure 5-8.An increase in price from $15 to $20 would
A)increase total revenue by $500
B)decrease total revenue by $500.
C)increase total revenue by $1,000.
D)decrease total revenue by $1,000.

Question

Figure 5-8 
-Refer to Figure 5-8.An increase in price from $15 to $20 would
A)increase total revenue by $500 
B)decrease total revenue by $500. 
C)increase total revenue by $1,000. 
D)decrease total revenue by $1,000.

Quizplus · Accepted Answer

An increase in price from $15 to $20 would decrease total revenue by $500 because the quantity demanded would decrease, leading to a loss in revenue that outweighs the gain from the higher price.

Figure 5-8 -Refer to Figure 5-8.An Increase in Price from $15 to from $15