Exhibit 20-5

-Refer to Exhibit 20-5.Assume that the seller of X increases the price from $1.50 to $2.00,and this results in an increase in total revenue.Which of the graphs represents the demand curve for X?

Question

Exhibit 20-5
 
-Refer to Exhibit 20-5.Assume that the seller of X increases the price from $1.50 to $2.00,and this results in an increase in total revenue.Which of the graphs represents the demand curve for X?

Quizplus · Accepted Answer

An increase in price leading to an increase in total revenue indicates that the demand for X is inelastic. Graph (2) would represent an inelastic demand curve.

Exhibit 20-5 -Refer to Exhibit 20-5.Assume That the Seller of X Increases