Use the table below to answer the following question.
Table 4.1.4

-Refer to Table 4.1.4. The table shows the demand schedule for computer chips. As the price rises from $200 a chip to $300 a chip, total revenue ________. So at a price of $250 a chip, demand is ________.
A)falls; inelastic
B)rises; inelastic
C)falls; rises
D)rises; elastic
E)rises; unit elastic

Question

Use the table below to answer the following question.
Table 4.1.4
 
-Refer to Table 4.1.4. The table shows the demand schedule for computer chips. As the price rises from $200 a chip to $300 a chip, total revenue ________. So at a price of $250 a chip, demand is ________.
A)falls; inelastic 
B)rises; inelastic 
C)falls; rises 
D)rises; elastic 
E)rises; unit elastic

Quizplus · Accepted Answer

As the price rises from $200 to $300, total revenue increases, indicating that demand is inelastic at $250 because the percentage change in quantity demanded is less than the percentage change in price.

Use the Table Below to Answer the Following Question