-Refer to the information above to answer this question.At what price is total revenue maximized?
A)$14.
B)$16.
C)$18.
D)$20.
E)$22.

Question

-Refer to the information above to answer this question.At what price is total revenue maximized?
A)$14. 
B)$16. 
C)$18. 
D)$20. 
E)$22.

Quizplus · Accepted Answer

Total revenue is maximized at the price where the elasticity of demand is equal to 1. This is because at this point, the percentage change in quantity demanded is exactly offset by the percentage change in price, leading to the highest possible total revenue. Without specific data on quantities demanded at each price point or a demand curve, it's not possible to calculate or infer the exact price point from the given options. However, in typical demand scenarios, the price that maximizes total revenue is found at the midpoint of the demand curve, where the elasticity of demand transitions from elastic to inelastic.

-Refer to the Information Above to Answer This Question