Figure 5-3

-Refer to Figure 5-3.If price falls within the A range of the demand curve we can expect total revenue to
A)increase.
B)decrease.
C)stay the same.
D)This determination cannot be made without further information.

Question

Figure 5-3
 
-Refer to Figure 5-3.If price falls within the A range of the demand curve we can expect total revenue to
A)increase. 
B)decrease. 
C)stay the same. 
D)This determination cannot be made without further information.

Quizplus · Accepted Answer

In the A range of the demand curve, demand is elastic, meaning that a decrease in price will lead to a proportionately larger increase in quantity demanded, thus increasing total revenue.

Figure 5-3 -Refer to Figure 5-3.If Price Falls Within the a Range