Assume a good has a downward-sloping,linear demand curve.Starting at a price of zero,as the price of the good increases,total revenue
A)Increases indefinitely.
B)Decreases indefinitely because the quantity sold will decrease.
C)Is constant.
D)Increases,then decreases.

Question

Quizplus · Accepted Answer

As the price of the good increases, total revenue will also increase initially due to the higher price per unit. However, as the price continues to increase, the quantity demanded will decrease, leading to a decrease in total revenue. Therefore, total revenue will first increase, then reach a maximum point, and eventually decrease.

Assume a Good Has a Downward-Sloping,linear Demand Curve