Use the following to answer question:
-(Figure: Demand for Notebook Computers)Use Figure: The Demand for Notebook Computers.Total revenue at point S equals the:
A)distance 0P.
B)distance MS.
C)area 0TUM.
D)area 0PSM.

Question

Use the following to answer question: 
-(Figure: Demand for Notebook Computers)Use Figure: The Demand for Notebook Computers.Total revenue at point S equals the:
A)distance 0P. 
B)distance MS. 
C)area 0TUM. 
D)area 0PSM.

Quizplus · Accepted Answer

Total revenue is equal to price multiplied by quantity. At point S, the price is OS and the quantity is SM. Therefore, the total revenue is the area of the rectangle 0PSM, which is represented by choice D.

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