Suppose that the total-revenue curve is derived from a particular linear demand curve. That demand curve must be
A)inelastic for price declines that increase quantity demanded from 6 units to 7 units.
B)elastic for price declines that increase quantity demanded from 6 units to 7 units.
C)inelastic for price increases that reduce quantity demanded from 4 units to 3 units.
D)elastic for price increases that reduce quantity demanded from 8 units to 7 units.

Question

Suppose that the total-revenue curve is derived from a particular linear demand curve. That demand curve must be
A)inelastic for price declines that increase quantity demanded from 6 units to 7 units. 
B)elastic for price declines that increase quantity demanded from 6 units to 7 units. 
C)inelastic for price increases that reduce quantity demanded from 4 units to 3 units. 
D)elastic for price increases that reduce quantity demanded from 8 units to 7 units.

Quizplus · Accepted Answer

The Answer of  Suppose that the total-revenue curve is derived from a particular linear demand curve. That demand curve must be
A)inelastic for price declines that increase quantity demanded from 6 units to 7 units. 
B)elastic for price declines that increase quantity demanded from 6 units to 7 units. 
C)inelastic for price increases that reduce quantity demanded from 4 units to 3 units. 
D)elastic for price increases that reduce quantity demanded from 8 units to 7 units.

Suppose That the Total-Revenue Curve Is Derived from a Particular