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

Question

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

Quizplus · Accepted Answer

Between points d and e, the demand curve is inelastic, meaning that the percentage change in quantity demanded is less than the percentage change in price. Therefore, raising prices in this range would increase total revenue, as the loss in revenue from selling fewer units is less than the gain in revenue from the higher price per unit.

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