Figure 7-13
-Refer to Figure 7-13. If price increases from $10 to $15, total revenue will
A) increase by $20, so demand must be inelastic in this price range.
B) increase by $5, so demand must be inelastic in this price range.
C) decrease by $20, so demand must be elastic in this price range.
D) decrease by $10, so demand must be elastic in this price range.

Question

Figure 7-13 
-Refer to Figure 7-13. If price increases from $10 to $15, total revenue will
A) increase by $20, so demand must be inelastic in this price range. 
B) increase by $5, so demand must be inelastic in this price range. 
C) decrease by $20, so demand must be elastic in this price range. 
D) decrease by $10, so demand must be elastic in this price range.

Quizplus · Accepted Answer

When price increases and total revenue also increases, it indicates that demand is inelastic in that price range.

Figure 7-13 -Refer to Figure 7-13. If Price Increases from $10 to from $10