Figure 5.4 shows a downward-sloping linear demand curve. Which of the following is true between points g and h in the figure below?
Figure 5.4

A)Total revenue remains constant at $180
B)Total revenue falls by $12.
C)Total revenue falls by $60.
D)Total revenue falls by $180.
E)Total revenue increases by $300.

Question

Figure 5.4 shows a downward-sloping linear demand curve. Which of the following is true between points g and h in the figure below?​ ​
Figure 5.4

A)Total revenue remains constant at $180 
B)Total revenue falls by $12. 
C)Total revenue falls by $60. 
D)Total revenue falls by $180. 
E)Total revenue increases by $300.

Quizplus · Accepted Answer

Between points g and h, the price decreases from $12 to $6, and the quantity demanded increases from 15 to 30. As a result, the total revenue decreases from $180 to $120 ($12 x 15 to $6 x 20), a fall of $60.

Figure 54 Shows a Downward-Sloping Linear Demand Curve