Q 200

Suppose the point (Q = 2,000, P = $60) is the midpoint on a certain downward-sloping, linear demand curve. Then
A)an increase in price from $40 to $42 will increase total revenue.
B)a decrease in price from $61 to $59 will leave total revenue unchanged.
C)the maximum value of total revenue is $120,000.
D)All of the above are correct.

Q 201

Moving downward and to the right along a linear demand curve, we know that total revenue
A)first increases, then decreases.
B)first decreases, then increases.
C)always increases.
D)always decreases.

Q 202

Total revenue will be at its largest value on a linear demand curve at the
A)top of the curve, where prices are highest.
B)midpoint of the curve.
C)low end of the curve, where quantity demanded is highest.
D)None of the above is correct.