Figure 5-4

-Refer to Figure 5-4.If price falls in the A range of the demand curve,what can we expect total revenue to do as one moves down the curve
A)increase
B)decrease
C)stay the same
D)decrease, then increase

Question

Figure 5-4
 
-Refer to Figure 5-4.If price falls in the A range of the demand curve,what can we expect total revenue to do as one moves down the curve
A)increase 
B)decrease 
C)stay the same 
D)decrease, then increase

Quizplus · Accepted Answer

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

Figure 5-4 -Refer to Figure 5-4.If Price Falls in the a Range