Figure 5.5 shows the total revenue curve for a firm. Which of the following statements is true in the range of the total revenue curve labeled B?
Figure 5.5.

A)Demand is elastic.
B)Demand is inelastic.
C)Demand is unit elastic.
D)Demand is perfectly inelastic.
E)Demand is perfectly elastic.

Question

Figure 5.5 shows the total revenue curve for a firm. Which of the following statements is true in the range of the total revenue curve labeled B?​ ​
Figure 5.5.
​

A)Demand is elastic. 
B)Demand is inelastic. 
C)Demand is unit elastic. 
D)Demand is perfectly inelastic. 
E)Demand is perfectly elastic.

Quizplus · Accepted Answer

In the range of the total revenue curve labeled B, the slope of the curve is positive, indicating that an increase in price results in an increase in total revenue. This suggests that the demand for the product is inelastic, as consumers are not very responsive to changes in price.

Figure 55 Shows the Total Revenue Curve for a Firm