Figure 5-15
-Refer to Figure 5-15.If,holding the supply curve fixed,there were an increase in demand that caused the equilibrium price to increase from $6 to $8,then sellers' total revenue would
A) increase.
B) decrease.
C) remain unchanged.
D) The effect on total revenue cannot be determined from the given information.

Question

Figure 5-15 
-Refer to Figure 5-15.If,holding the supply curve fixed,there were an increase in demand that caused the equilibrium price to increase from $6 to $8,then sellers' total revenue would
A) increase. 
B) decrease. 
C) remain unchanged. 
D) The effect on total revenue cannot be determined from the given information.

Quizplus · Accepted Answer

An increase in equilibrium price from $6 to $8 implies that the new price is higher than the previous equilibrium price, indicating that the quantity demanded increased more than the quantity supplied. Thus, sellers will increase their revenue as they can sell their products at a higher price, resulting in a larger total revenue. Therefore, an increase in demand causes an increase in sellers' total revenue.

Figure 5-15 -Refer to Figure 5-15.If,holding the Supply Curve Fixed,there Were an Fixed,there