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 $150 to $100,
A) arrows representing the price and quantity effects both point down.
B) an arrow representing the price effect points down and is shorter than an arrow for the quantity effect.
C) total revenue moves in the same direction as the arrow representing the price effect.
D) the arrow representing the price effect points down and the arrow representing the quantity effect points up.
E) both c and d

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 $150 to $100,
A) arrows representing the price and quantity effects both point down.
B) an arrow representing the price effect points down and is shorter than an arrow for the quantity effect.
C) total revenue moves in the same direction as the arrow representing the price effect.
D) the arrow representing the price effect points down and the arrow representing the quantity effect points up.
E) both c and d

Quizplus · Accepted Answer

The price effect is negative because the price falls, and the quantity effect is positive because the quantity demanded increases. Total revenue moves in the same direction as the arrow representing the price effect because the price effect is larger than the quantity effect.

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