Exhibit 5-5 Demand curve for computers

-In Exhibit 5-5, the change in total revenue resulting from a change in price from A to D indicates that the demand curve is:
A) elastic.
B) inelastic.
C) unitary elastic.
D) nonelastic.

Question

Exhibit 5-5 Demand curve for computers
​ 
-In Exhibit 5-5, the change in total revenue resulting from a change in price from A to D indicates that the demand curve is:
A) elastic. 
B) inelastic. 
C) unitary elastic. 
D) nonelastic.

Quizplus · Accepted Answer

The change in total revenue resulting from a change in price from A to D indicates that the demand for computers is elastic. This means that the percentage change in quantity demanded is greater than the percentage change in price. As a result, a decrease in price leads to a more significant increase in total revenue. Conversely, an increase in price will lead to a more substantial decrease in total revenue.

Exhibit 5-5 Demand Curve for Computers