Exhibit 20-3

-Refer to Exhibit 20-3.If price decreases from $5.50 to $4.50,total revenue along the demand curve
A) increases to $67.50.
B) increases to $87.50.
C) remains at $87.50.
D) decreases to $67.50.
E) decreases to $27.50.

Question

Exhibit 20-3
 
-Refer to Exhibit 20-3.If price decreases from $5.50 to $4.50,total revenue along the demand curve
A) increases to $67.50. 
B) increases to $87.50. 
C) remains at $87.50. 
D) decreases to $67.50. 
E) decreases to $27.50.

Quizplus · Accepted Answer

When price decreases from $5.50 to $4.50, quantity demanded increases from 15 to 20 units. Total revenue is calculated as price multiplied by quantity, so total revenue increases from $82.50 (15 units x $5.50) to $90 (20 units x $4.50).

Exhibit 20-3 -Refer to Exhibit 20-3.If Price Decreases from $5.50 to $4.50,total