Figure 5-4 -Refer to Figure 5-4. Total revenue when the price is P₁ is represented by A)areas B + D. B)areas A + B. C)areas C + D. D)area D.

Name: Figure 5-4 -Refer to Figure 5-4. Total revenue when the price is P 1 is represented by A)areas B + D. B)areas A + B. C)areas C + D. D)area D.
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Question

Quizplus · Accepted Answer

Total revenue is equal to price times quantity. When the price is P1, the quantity demanded is Q1. Total revenue is therefore equal to P1 times Q1, which is represented by the area of rectangle B.

Figure 5-4 -Refer to Figure 5-4. Total Revenue When the Price Is