Exhibit 6-4
-Refer to Exhibit 6-4. Graph A represents a demand curve that is relatively ____in the range illustrated. Total revenue ____ as the price decreases from $10 to $5.
A)inelastic; decreases
B)elastic; decreases
C)elastic; increases
D)inelastic; increases

Question

​Exhibit 6-4 
-Refer to Exhibit 6-4. Graph A represents a demand curve that is relatively ____in the range illustrated. Total revenue ____ as the price decreases from $10 to $5.
A)​inelastic; decreases 
B)​elastic; decreases 
C)​elastic; increases 
D)​inelastic; increases

Quizplus · Accepted Answer

Graph A represents a demand curve that is relatively elastic in the range illustrated because a decrease in price from $10 to $5 leads to a proportionally larger increase in quantity demanded, resulting in an increase in total revenue.

​Exhibit 6-4 -Refer to Exhibit 6-4. Graph a Represents a Demand Curve

Exhibit 6-4 -Refer to Exhibit 6-4. Graph a Represents a Demand Curve