Use the table below to answer the following question.
Table 4.1.3

-Refer to Table 4.1.3.The table shows the demand schedule for computer chips.As the price rises from $200 a chip to $300 a chip,total revenue ________.So at a price of $250 a chip,demand is ________.
A)falls;inelastic
B)rises;inelastic
C)falls;rises
D)rises;elastic
E)rises;unit elastic

Question

Use the table below to answer the following question.
Table 4.1.3
 
-Refer to Table 4.1.3.The table shows the demand schedule for computer chips.As the price rises from $200 a chip to $300 a chip,total revenue ________.So at a price of $250 a chip,demand is ________.
A)falls;inelastic 
B)rises;inelastic 
C)falls;rises 
D)rises;elastic 
E)rises;unit elastic

Quizplus · Accepted Answer

Without the specific data from Table 4.1.3, we can infer that if total revenue rises as the price increases from $200 to $300, it means that the percentage decrease in quantity demanded is less than the percentage increase in price, indicating inelastic demand. Thus, at a price of $250 a chip, demand would still be inelastic.

Use the Table Below to Answer the Following Question