Figure 5-9
-Refer to Figure 5-9.If the price falls from point A to point B,total revenue
A)increases,and demand is price elastic.
B)decreases,and demand is price elastic.
C)increases,and demand is price inelastic.
D)decreases,and demand is price inelastic.

Question

Figure 5-9 
-Refer to Figure 5-9.If the price falls from point A to point B,total revenue
A)increases,and demand is price elastic. 
B)decreases,and demand is price elastic. 
C)increases,and demand is price inelastic. 
D)decreases,and demand is price inelastic.

Quizplus · Accepted Answer

When the price falls and total revenue increases, it indicates that the demand is price elastic, meaning consumers are responsive to price changes.

Figure 5-9 -Refer to Figure 5-9.If the Price Falls from Point a from Point