Figure 5-2

-Refer to Figure 5-2.Which of the following price changes would result in no change in sellers' total revenue?
A)The price increases from $6 to $9.
B)The price increases from $9 to $15.
C)The price decreases from $12 to $9.
D)The price decreases from $9 to $5.

Question

Figure 5-2
 
-Refer to Figure 5-2.Which of the following price changes would result in no change in sellers' total revenue?
A)The price increases from $6 to $9. 
B)The price increases from $9 to $15. 
C)The price decreases from $12 to $9. 
D)The price decreases from $9 to $5.

Quizplus · Accepted Answer

In the graph, the price elasticity of demand is inelastic in the range of $9 to $12, meaning a change in price would result in a proportionate change in quantity demanded. Therefore, a decrease in price from $12 to $9 would increase the quantity demanded by the same proportion, resulting in no change in total revenue for the seller. The other options would result in a change in total revenue for the seller, as they are either in the elastic range (A and D) or will result in a decrease in quantity demanded (B).

Figure 5-2 -Refer to Figure 5-2.Which of the Following Price Changes Would