To answer the question,refer to the following table showing a demand schedule: $\begin{array}{llcc}
\underline{ \text {Price } }&\underline{ \text { Ouantity } } \
&\underline{\text {demanded }} \
\$200 &1000\
150&1400\
100 &1800\
\end{array}$ If price rises from $100 to $150,
A)arrows representing the price and quantity effects both point upward.
B)an arrow representing the price effect points upward and is shorter than an arrow for the quantity effect,which points downward.
C)total revenue moves up as indicated by the direction of the arrow representing the price effect.
D)the arrow representing the price effect points down and the arrow representing the quantity effect points up.
E)both c and d

Question

To answer the question,refer to the following table showing a demand schedule: $\begin{array}{llcc}
\underline{  \text {Price  } }&\underline{ \text { Ouantity } } \
 &\underline{\text {demanded  }} \
\$200 &1000\
150&1400\
100 &1800\
\end{array}$  If price rises from $100 to $150,
A)arrows representing the price and quantity effects both point upward.
B)an arrow representing the price effect points upward and is shorter than an arrow for the quantity effect,which points downward.
C)total revenue moves up as indicated by the direction of the arrow representing the price effect.
D)the arrow representing the price effect points down and the arrow representing the quantity effect points up.
E)both c and d

Quizplus · Accepted Answer

Total revenue is equal to price times quantity. When price rises from $100 to $150, quantity demanded falls from 1800 to 1400. The price effect is positive because the price increase raises total revenue. The quantity effect is negative because the quantity decrease lowers total revenue. The overall effect is positive because the price effect is larger than the quantity effect.

To Answer the Question,refer to the Following Table Showing a Demand