Exhibit 5-26
-Refer to Exhibit 5-26. As you move from A to B on the demand curve, total revenue __________ and therefore the price elasticity must be ____________ between A and B.
A) stays the same; unitary
B) decreases; inelastic
C) increases; elastic
D) decreases; elastic
E) increases, inelastic

Question

Exhibit 5-26 
-Refer to Exhibit 5-26. As you move from A to B on the demand curve, total revenue __________ and therefore the price elasticity must be ____________ between A and B.
A) stays the same; unitary 
B) decreases; inelastic 
C) increases; elastic 
D) decreases; elastic 
E) increases, inelastic

Quizplus · Accepted Answer

As you move from A to B on the demand curve, if total revenue increases, it indicates that the demand is elastic between A and B. This is because, in the elastic range of the demand curve, a decrease in price leads to a proportionately larger increase in quantity demanded, thus increasing total revenue.

Exhibit 5-26 -Refer to Exhibit 5-26. as You Move from a to from a to B