Along a linear demand curve, as the price increases from zero,
A)demand decreases
B)demand increases
C)quantity demanded increases
D)total revenue first increases but eventually decreases
E)total revenue first decreases but eventually increases

Question

Quizplus · Accepted Answer

As price increases along a linear demand curve, total revenue first increases because the price effect dominates, but eventually decreases as the quantity effect dominates, following the law of demand.

Along a Linear Demand Curve, as the Price Increases from Zero