Figure 5-7

-Refer to Figure 5-7. If, holding the supply curve fixed, there were an increase in demand that caused the equilibrium price to increase from $6 to $7, then sellers' total revenue would
A)increase.
B)decrease.
C)remain unchanged.
D)The effect on total revenue cannot be determined from the given information.

Question

Figure 5-7
 
-Refer to Figure 5-7. If, holding the supply curve fixed, there were an increase in demand that caused the equilibrium price to increase from $6 to $7, then sellers' total revenue would
A)increase. 
B)decrease. 
C)remain unchanged. 
D)The effect on total revenue cannot be determined from the given information.

Quizplus · Accepted Answer

An increase in demand, holding supply constant, that leads to an increase in equilibrium price typically results in an increase in sellers' total revenue, assuming the demand curve slopes downward and the supply curve slopes upward.

Figure 5-7 -Refer to Figure 5-7. If, Holding the Supply Curve Fixed