-In the above figure, along which range would total revenue rise by lowering prices?
A) Between point a and point b
B) Between point c and point d
C) Between point d and point e
D) Below point e

Question

-In the above figure, along which range would total revenue rise by lowering prices?
A) Between point a and point b 
B) Between point c and point d 
C) Between point d and point e 
D) Below point e

Quizplus · Accepted Answer

Total revenue rises when the price elasticity of demand is elastic. Between point a and point b, demand is likely elastic, so lowering prices would increase total revenue.

-In the Above Figure, Along Which Range Would Total Revenue