Figure 5-4

-Refer to Figure 5-4.If price falls in the C 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 C 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

As we move down the demand curve from point A to C, the price decreases and the quantity demanded increases, but at a diminishing rate. Therefore, the total revenue (price x quantity) will decrease as we move down the demand curve in range C.

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