Refer to the following table showing a demand schedule:

$\begin{array}{ll}
\text { Price } & \text { Quantity } \
&\text { demanded } \
\$ 200 &1000\
150 & 1400 \
100 & 1800
\end{array}$
-If price falls from $200 to $150,
A) arrows representing the price and quantity effects both point down.
B) an arrow representing the price effect points down and is longer than an arrow for the quantity effect.
C) an arrow representing the price effect points down and is shorter than an arrow for the quantity effect.
D) arrows representing the price and quantity effects both point up.
E) total revenue moves in the same direction as the arrow representing the price effect.

Question

Refer to the following table showing a demand schedule:

$\begin{array}{ll}
\text { Price } & \text { Quantity } \
 &\text { demanded } \
\$ 200 &1000\
150 & 1400 \
100 & 1800
\end{array}$
-If price falls from $200 to $150,
A) arrows representing the price and quantity effects both point down.
B) an arrow representing the price effect points down and is longer than an arrow for the quantity effect.
C) an arrow representing the price effect points down and is shorter than an arrow for the quantity effect.
D) arrows representing the price and quantity effects both point up.
E) total revenue moves in the same direction as the arrow representing the price effect.

Quizplus · Accepted Answer

When the price falls from $200 to $150, the quantity demanded increases from 1000 to 1400. The price effect (decrease) is shorter than the quantity effect (increase), indicating that the quantity effect dominates.

Refer to the Following Table Showing a Demand Schedule Price Quantity demanded $200100015014001001800\begin{array}{ll}\text { Price } & \text { Quantity } \\ &\text { demanded } \\\$ 200 &1000\\150 & 1400 \\100 & 1800\end{array} Price $200150100​ Quantity demanded 100014001800​

Refer to the Following Table Showing a Demand Schedule $\begin{array}{ll}\text { Price } & \text { Quantity } \\ &\text { demanded } \\\$ 200 &1000\\150 & 1400 \\100 & 1800\end{array}$