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 quantity effect points up and is shorter than an arrow for the price 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 quantity 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 quantity effect points up and is shorter than an arrow for the price 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 quantity effect.

Quizplus · Accepted Answer

When price falls from $200 to $150, quantity demanded increases from 1000 to 1400. Total revenue, which is price times quantity, moves in the same direction as the quantity effect, as the increase in quantity demanded leads to an increase in total revenue.

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 $\begin{array}{ll}\text { Price } & \text { Quantity } \\ &\text { demanded } \\\$ 200 &1000\\150 & 1400 \\100 & 1800\end{array}$