Figure 5-5

-Refer to Figure 5-5.When price falls from $50 to $40,it can be inferred that demand between those two prices is
A)inelastic, since total revenue decreases from $8,000 to $5,000.
B)inelastic, since total revenue increases from $5,000 to $8,000.
C)elastic, since total revenue increases from $5,000 to $8,000.
D)unit elastic, since total revenue increases from $5,000 to $8,000.

Question

Figure 5-5
 
-Refer to Figure 5-5.When price falls from $50 to $40,it can be inferred that demand between those two prices is
A)inelastic, since total revenue decreases from $8,000 to $5,000. 
B)inelastic, since total revenue increases from $5,000 to $8,000. 
C)elastic, since total revenue increases from $5,000 to $8,000. 
D)unit elastic, since total revenue increases from $5,000 to $8,000.

Quizplus · Accepted Answer

When the price falls and total revenue increases, it indicates that the demand is elastic.

Figure 5-5 -Refer to Figure 5-5.When Price Falls from $50 to $40,it