Figure 5-11
-Refer to Figure 5-11.If price increases from $10 to $20,total revenue will
A)increase by $120,so demand must be inelastic in this price range.
B)increase by $320,so demand must be inelastic in this price range.
C)decrease by $120,so demand must be elastic in this price range.
D)decrease by $320,so demand must be elastic in this price range.

Question

Figure 5-11 
-Refer to Figure 5-11.If price increases from $10 to $20,total revenue will
A)increase by $120,so demand must be inelastic in this price range. 
B)increase by $320,so demand must be inelastic in this price range. 
C)decrease by $120,so demand must be elastic in this price range. 
D)decrease by $320,so demand must be elastic in this price range.

Quizplus · Accepted Answer

When price increases from $10 to $20, total revenue increases by $320. This means that demand is inelastic in this price range, as the percentage change in quantity demanded is less than the percentage change in price.

Figure 5-11 -Refer to Figure 5-11.If Price Increases from $10 to $20,total