Use the following for questions 116-119.
Exhibit: The Demand for Macintosh Computers

-(Exhibit: Demand for Macintosh Computers) The seller's total revenue at point S equals the:
A) distance 0P.
B) distance MS.
C) area 0TUM.
D) area 0PSM.

Question

Use the following for questions 116-119.
Exhibit: The Demand for Macintosh Computers
 
-(Exhibit: Demand for Macintosh Computers) The seller's total revenue at point S equals the:
A) distance 0P. 
B) distance MS. 
C) area 0TUM. 
D) area 0PSM.

Quizplus · Accepted Answer

The total revenue at any point is equal to the price multiplied by the quantity sold. In this exhibit, the price is measured on the vertical axis and the quantity is measured on the horizontal axis. Therefore, the total revenue at point S is equal to the area of the rectangle with sides PS and SM, which is option D, area 0PSM.

Use the Following for Questions 116-119