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 rises from $100 to $150,
A) arrows representing the price and quantity effects both point upward.
B) an arrow representing the price effect points upward and is shorter than an arrow for the quantity effect, which points downward.
C) total revenue moves up, or increase, as indicated by the direction of 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 rises from $100 to $150,
A) arrows representing the price and quantity effects both point upward.
B) an arrow representing the price effect points upward and is shorter than an arrow for the quantity effect, which points downward.
C) total revenue moves up, or increase, as indicated by the direction of 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

When price rises from $100 to $150, the price effect increases total revenue (price increase), but the quantity effect decreases total revenue (quantity decrease). However, total revenue increases from $180,000 ($100 x 1800) to $210,000 ($150 x 1400), indicating the price 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 $\begin{array}{ll}\text { Price } & \text { Quantity } \\ &\text { demanded } \\\$ 200 &1000\\150 & 1400 \\100 & 1800\end{array}$