The demand curve is also the average-revenue curve.

Question

Quizplus · Accepted Answer

The demand curve represents the quantity of a good or service that consumers are willing and able to purchase at different prices. Average revenue, on the other hand, is the revenue per unit of output sold, which can be calculated by dividing total revenue by the quantity sold. Since total revenue is equal to price multiplied by quantity, the average revenue curve will have the same shape as the demand curve, and will be equal to the demand curve at every point. Therefore, the statement is true.

The Demand Curve Is Also the Average-Revenue Curve