Figure 7-12
-Refer to Figure 7-12. An increase in price from $30 to $35 would
A) increase total revenue by $250
B) decrease total revenue by $250.
C) increase total revenue by $500.
D) decrease total revenue by $500.

Question

Figure 7-12 
-Refer to Figure 7-12. An increase in price from $30 to $35 would
A) increase total revenue by $250 
B) decrease total revenue by $250. 
C) increase total revenue by $500. 
D) decrease total revenue by $500.

Quizplus · Accepted Answer

An increase in price typically leads to a decrease in quantity demanded. If the demand is elastic, the decrease in quantity demanded will be proportionally larger than the increase in price, leading to a decrease in total revenue.

Figure 7-12 -Refer to Figure 7-12. an Increase in Price from $30